Analyst Jason Bazinet from Citi maintained a Hold rating on Roku (ROKU – Research Report) and increased the price target to $84.00 from $68.00.
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Jason Bazinet has given his Hold rating due to a combination of factors surrounding Roku’s recent partnership with Amazon. This collaboration is expected to enhance Roku’s position in the connected TV space by integrating Amazon’s demand-side platform with Roku’s inventory, potentially driving incremental revenue. Despite the positive outlook and an increase in target price from $68 to $84, Bazinet maintains a Neutral stance.
The rationale behind this rating is that the anticipated benefits from the partnership are already reflected in Roku’s current stock price. The market has responded favorably to the announcement, with Roku’s shares increasing by 10%, equating to a $1 billion value addition. However, Bazinet believes that the risk-reward profile of the stock remains balanced, justifying the Hold rating.
ROKU’s price has also changed slightly for the past six months – from $83.390 to $80.630, which is a -3.31% drop .