Roku upgraded to Buy from Neutral at Redburn Atlantic

Redburn Atlantic upgraded Roku (ROKU) to Buy from Neutral with a $100 price target The firm says the company has “defensive attributes” with $2.2B of cash, which should rise to $3.7B by 2027, and with 40% of costs variable. The shift of advertising dollars to connected TV will continue to progress and will likely accelerate if macro headwinds worsen, the analyst tells investors in a research note. Redburn believes Roku has reached a level of financial maturity where it can now be valued on EBITDA and free cash flow multiples, “for the first time providing a valuation floor to the stock.”