Analyst Jason Bazinet from Citi reiterated a Hold rating on Roku (ROKU – Research Report) and keeping the price target at $81.00.
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Jason Bazinet has given his Hold rating due to a combination of factors impacting Roku’s financial outlook. Although Roku’s first-quarter revenue slightly exceeded expectations, its adjusted EBITDA fell short of consensus estimates, indicating potential challenges in profitability. Additionally, the company’s guidance for the second quarter and the full year 2025 suggests a downward revision in revenue and gross profit expectations, which may affect investor sentiment.
Despite these concerns, Roku maintained its adjusted EBITDA guidance for 2025, providing some stability in its financial projections. The performance of Roku’s platform and devices segments showed mixed results, with platform revenues aligning with expectations and devices revenue surpassing estimates, albeit with lower gross margins. These mixed signals contribute to a cautious outlook, justifying the Hold rating as investors weigh the potential risks and rewards of the stock.
In another report released on April 28, Evercore ISI also maintained a Hold rating on the stock with a $105.00 price target.
ROKU’s price has also changed slightly for the past six months – from $65.700 to $67.270, which is a 2.39% increase.