In a report released today, Daniel Kurnos from Benchmark Co. maintained a Buy rating on Roku (ROKU – Research Report), with a price target of $130.00.
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Daniel Kurnos has given his Buy rating due to a combination of factors that highlight Roku’s potential for growth and resilience in the market. Despite some pricing softness, Roku’s volume growth has mitigated these concerns, and the company’s advertising revenue is projected to grow at or above 20% annually, outpacing the connected TV sector even amidst macroeconomic uncertainties. Kurnos notes that Roku’s platform growth is supported by a significant increase in streaming hours, particularly on The Roku Channel, which aligns with their programmatic strategy and offers a monetization floor during uncertain times.
Furthermore, Kurnos points out that while the first quarter may have seemed uneventful, Roku’s revenue exceeded expectations, and the company’s strategic initiatives, such as DSP integration and new partnerships, present potential catalysts for future growth. The anticipated acquisition, although not yet closed, is factored into the guidance and could bolster Roku’s subscription strategy. Overall, Kurnos believes that Roku’s organic growth trajectory remains strong, with double-digit growth expected for platform revenue, making it a promising investment opportunity.
In another report released today, Pivotal Research also reiterated a Buy rating on the stock with a $100.00 price target.
Based on the recent corporate insider activity of 84 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of ROKU in relation to earlier this year.