Roku Analysts Dissect Turnaround Story: 'Stronger Cash Flow Profile'
Portfolio Pulse from Priya Nigam
Roku Inc (NASDAQ:ROKU) updated its Q3 guidance, leading to a pullback in shares. Analyst Laura Martin from Needham maintained a Buy rating and raised the price target from $85 to $100. Roku's new CFO, Dan Jedda, is expected to bring a free cash flow-first focus to the company. Analyst Daniel Kurnos from Benchmark reiterated a Buy rating and increased the price target from $89 to $115. Despite the company's guidance to higher revenue and EBITDA, the 2024 consensus may not change significantly due to ongoing macroeconomic uncertainty.
September 07, 2023 | 3:29 pm
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NEUTRAL IMPACT
Roku's updated Q3 guidance and the appointment of a new CFO with a free cash flow-first focus could potentially improve the company's financial performance. However, ongoing macroeconomic uncertainty may limit significant changes to the 2024 consensus.
The updated Q3 guidance and the appointment of a new CFO are positive developments for Roku. However, the ongoing macroeconomic uncertainty and other factors such as softness in scatter and stock comp assumptions may limit the impact of these developments on the company's stock price in the short term.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 100