Atlantic Equities Sees Considerable Downside In Roku - Read Why - Roku (NASDAQ:ROKU)

Atlantic Equities analyst Hamilton Faber initiated coverage of Roku Inc ROKU with an Underweight rating and a $136 price target. The price target implies a 39% downside.
The U.S. has led the company's growth through the provision of the company's operating system to tier two and three TV manufacturers, Faber tells investors in a research note.
However, the analyst sees this growth slowing as he does not expect the largest TV makers to outsource to Roku.
In addition, the company's progress in international markets has been slow and will compensate for the U.S. slowdown, contends Faber.
Roku pioneered streaming to the TV. It connects users to the streaming content they love, enables content publishers to build and monetize large audiences, and provides advertisers with unique capabilities to engage consumers.
Price Action: ROKU shares traded lower by 4.19% at $213.50 premarket on the last check Wednesday.