Roku's Innovation and Shift in Investment Strategy Sets the Stage for Positive Cash Flow: Analyst
Portfolio Pulse from Anusuya Lahiri
Benchmark analyst Daniel Kurnos has reiterated a Buy rating for Roku Inc (NASDAQ:ROKU) with a $89 price target. Kurnos believes that Roku's shift in investment strategy to focus on leverage is underappreciated and predicts a significant increase in free cash flow within the next 12-18 months. Despite potential near-term revenue challenges due to planned marketing spend reductions at networks, Kurnos sees Roku's importance within the ecosystem solidifying and expects growth acceleration in 2024 and beyond.
July 17, 2023 | 7:38 pm
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POSITIVE IMPACT
Roku's shift in investment strategy to focus on leverage is expected to result in a significant increase in free cash flow within the next 12-18 months. Despite potential near-term revenue challenges, Roku's importance within the ecosystem is expected to solidify, setting the stage for growth acceleration in 2024 and beyond.
The analyst's positive outlook on Roku's future performance, despite potential near-term revenue challenges, is likely to boost investor confidence in the company. This, coupled with the predicted increase in free cash flow due to the shift in investment strategy, could positively impact Roku's stock price in the short term.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 100