Roku, the Communication Services sector company, was revisited by a Wall Street analyst today. Analyst Daniel Kurnos from Benchmark Co. maintained a Buy rating on the stock and has a $130.00 price target.
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Daniel Kurnos has given his Buy rating due to a combination of factors that suggest Roku has potential for growth and profitability. Kurnos notes that despite some challenges, such as potential competition from Walmart and Vizio, Roku is well-positioned to achieve platform revenue growth of 16-17%, which is above the current consensus. This growth is supported by a healthier-than-expected CTV ad market and strong engagement trends.
Furthermore, Kurnos highlights Roku’s strategic moves, such as gaining shelf space at other retailers and potential benefits from partnerships like the Amazon DSP coming online. He also points out that Roku has a cushion in terms of cost management, which could lead to better-than-expected EBITDA performance. Overall, Kurnos believes that Roku remains a strong long-term investment idea, with potential to break out of its recent trading range and deliver upside through 2026.
In another report released today, Citizens JMP also maintained a Buy rating on the stock with a $110.00 price target.