Morgan Stanley analyst Benjamin Swinburne maintains $Roku Inc (ROKU.US)$ with a sell rating, and adjusts the target price from $60 to $67.
According to TipRanks data, the analyst has a success rate of 61.2% and a total average return of 12.3% over the past year.
Furthermore, according to the comprehensive report, the opinions of $Roku Inc (ROKU.US)$'s main analysts recently are as follows:
Roku's third-quarter results, as well as its fourth-quarter guidance, surpassed expectations due to factors including political advertising, subscription video on demand (SVOD) platforms raising prices, and initial advantages from partnerships with third-party demand-side platforms (DSPs). Nevertheless, the analyst highlights potential challenges to escalating platform revenue growth in the coming year, considering the demanding comparisons with political ad revenue and a possible slowdown in contributions from third-party DSPs within a fiercely competitive connected TV (CTV) industry.
The company surpassed expectations across all metrics in its third-quarter results, and its fourth-quarter revenue outlook is promising, although its profit forecast for the same quarter is somewhat underwhelming. Engagement continues to be robust, as evidenced by a 20% rise in viewing hours, growth in streaming viewers, and an 80% year-over-year surge for The Roku Channel. Furthermore, there are early signs that costs may only rise slightly in the coming year, potentially paving the way for continued margin growth.
Roku's third-quarter performance exceeded expectations, although growth projections into the fourth quarter of 2024 and the first half of 2025 appear less straightforward due to various factors. It is suggested that greater clarity is necessary for a more bullish perspective, considering the company's valuation appears high relative to the new estimates for 2025 EV/EBITDA.
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