MoffettNathanson Turns Bearish On This Streaming Platform

Loading...
Loading...
  • Two analysts slashed price targets on Roku Inc ROKU in quick succession.
  • MoffettNathanson analyst Michael Nathanson downgraded to Sell from Neutral with a price target of $220, down from $330, implying a 20.4% downside. 
  • "Simply put, we think our and the Street's long-term revenue and earnings estimates are just too damn high." 
  • Roku will need to monetize an "absurdly high portion of long-tail" ad-based video on demand impressions to come even close to Street estimates, says the analyst. 
  • Nathanson believes this will be a challenge given the rising competition and sees signs of slowing revenue growth at Roku.
  • Truist analyst Matthew Thornton lowered the PT to $360 from $390, implying a 30.2% upside, and reiterated a Buy after the company's Q3 report. 
  • The analyst said the new price target reflects the short-term supply chain headwind to ad revenue.
  • Price Action: ROKU shares traded lower by 3.60% at $266.51 in the premarket session on the last check Wednesday.
Market News and Data brought to you by Benzinga APIs
Comments
Loading...
date
ticker
name
Price Target
Upside/Downside
Recommendation
Firm
Posted In: Analyst ColorNewsDowngradesPrice TargetReiterationAnalyst RatingsMoversTechTrading IdeasBriefswhy it's moving
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...