Analyst Laura Martin of Needham maintained a Buy rating on Roku (ROKU – Research Report), retaining the price target of $88.50.
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Laura Martin’s rating is based on several positive developments for Roku. Firstly, the acquisition of Frndly TV is expected to enhance Roku’s revenue by 2025, as it was not initially included in their guidance. This acquisition is seen as a strategic move to boost subscription revenue by leveraging Roku’s platform to accelerate subscriber growth.
Additionally, Roku’s cautious approach to data management, particularly through the use of anonymized Clean Rooms, highlights their commitment to protecting proprietary data while enhancing DSP integrations. Furthermore, Roku’s recognition of the increasing value of its first-party CTV data and efforts to monetize it through partnerships like iSpot demonstrate a strategic focus on maximizing data-driven revenue. Lastly, the restructuring of agreements and accounting policies to minimize ASC 606 adjustments indicates a more stable financial outlook, contributing to the Buy rating.
In another report released on May 6, Robert W. Baird also maintained a Buy rating on the stock with a $85.00 price target.