Roku price target lowered to $85 from $100 at BofA

BofA lowered the firm’s price target on Roku (ROKU) to $85 from $100 and keeps a Buy rating on the shares after the company reported “solid” Q1 results and maintained its full-year platform revenue outlook of $3.95B, which the firm calls “encouraging given the underlying macro uncertainty.” Roku has notable scope to keep expanding its top and bottom line and should benefit from several favorable industry trends along with company-specific actions, says the analyst, who applies a lower multiple, citing multiple compression in the comp set and a slightly lower premium to comps.