Despite Advertising Slowdown, Analyst Expects Q4 As Roku's Inflection Point with Positive EBITDA Outlook
Portfolio Pulse from Anusuya Lahiri
Wedbush analyst Alicia Reese reiterated Roku Inc (NASDAQ:ROKU) with an Outperform and a $80 price target, reflecting long-term global growth and significant leverage in Roku's business model. Despite a weak advertising market pressuring Average Revenue Per User (ARPU), Roku's share gains in the digital connected TV (CTV) space continue. The company is expected to return to meaningful profitability by year-end, with Q2 revenue likely to be $770 million, slightly below the consensus estimate of $773 million.
July 21, 2023 | 6:57 pm
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Roku's business model is expected to leverage long-term global growth, despite a weak advertising market. The company is expected to return to profitability by year-end, with Q2 revenue likely to be $770 million, slightly below the consensus estimate.
The news is highly relevant to Roku as it directly pertains to the company's financial performance and future outlook. The positive outlook from the analyst, despite the weak advertising market, indicates confidence in the company's business model and growth potential. This could potentially have a positive impact on the company's stock price in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100