Citi analyst Jason Bazinet has maintained their neutral stance on ROKU stock, giving a Hold rating today.
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Jason Bazinet has given his Hold rating due to a combination of factors that provide both positive and cautious signals for Roku’s stock. The company reported stronger-than-expected financial results for the fourth quarter of 2024, with revenue, adjusted EBITDA, and net additions surpassing both Citi’s and consensus estimates. Specifically, Roku’s net additions and average revenue per user (ARPU) were above expectations, indicating healthy user growth and monetization.
However, despite these positive financial outcomes, the outlook for the first quarter of 2025 suggests revenue and adjusted EBITDA figures that are mostly in line with consensus expectations, indicating limited upside potential. Additionally, while Roku’s platform segment performed well, the devices segment underperformed, with revenues and gross margins falling short of expectations. The overall expected share price return is also calculated at -19.5%, which further justifies the Hold rating as it implies limited potential for significant near-term gains.
In another report released today, Piper Sandler also reiterated a Hold rating on the stock with a $100.00 price target.
Based on the recent corporate insider activity of 86 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of ROKU in relation to earlier this year.