William Blair analyst Ralph Schackart has maintained their bullish stance on ROKU stock, giving a Buy rating on July 24.
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Ralph Schackart has given his Buy rating due to a combination of factors that highlight Roku’s strong market position and growth potential. Firstly, Roku’s scale is expanding significantly, with its streaming devices reaching more U.S. households than the top multichannel video programming distributors combined. It holds the leading position as the top-selling TV operating system in the U.S., Canada, and Mexico, and its total streaming hours have seen a substantial year-over-year increase.
Additionally, The Roku Channel is performing exceptionally well, ranking as the second most engaged app on Roku in the U.S. and third globally by reach. The company’s recent $400 million stock-purchase program aims to counteract dilution, further strengthening its financial position. Moreover, Roku’s advancements in advertising technology, including partnerships with major players like Amazon, are driving growth in video advertising faster than the overall platform revenue, showcasing its ability to attract both small and large advertisers. These factors, combined with its impressive quarterly results, where net revenue and adjusted EBITDA exceeded expectations, underpin Schackart’s positive outlook on Roku’s stock.
In another report released on July 24, Needham also maintained a Buy rating on the stock with a $100.00 price target.