Roku (ROKU – Research Report), the Communication Services sector company, was revisited by a Wall Street analyst today. Analyst Ruplu Bhattacharya from Bank of America Securities reiterated a Buy rating on the stock and has a $120.00 price target.
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Ruplu Bhattacharya has given his Buy rating due to a combination of factors that highlight Roku’s strong market position and growth potential. Roku’s expanding reach, currently spanning over 90 million streaming households with expectations to hit 100 million soon, presents a significant competitive advantage, particularly attractive to advertisers. The company’s recent financial performance, including a robust fourth quarter and improved estimates for revenue, EBITDA, and free cash flow for 2025, also supports this positive outlook.
Roku’s strategic initiatives, such as the introduction of new advertising products like the Roku Ads Manager and Roku Data Cloud, are expected to attract more advertisers and boost platform revenues. Additionally, the company’s confidence in providing guidance for the fiscal year 2025, a first since 2022, indicates an optimistic expectation of demand growth. This guidance is not reliant on the recovery of media and entertainment spending, showcasing Roku’s broad-based growth strategy. Overall, these factors contribute to the Buy rating with a price objective of $120.
In another report released today, JMP Securities also maintained a Buy rating on the stock with a $115.00 price target.