Roku downgraded to Underweight from Equal Weight at Wells Fargo

Wells Fargo analyst Steven Cahall downgraded Roku (ROKU) to Underweight from Equal Weight with a price target of $51, down from $77. The analyst thinks Walmart’s (WMT) acquisition of Vizio (VZIO) creates “substantial risk” for Roku. The deal also sets a new connected TV valuation that is well below Roku’s current multiple, the analyst tells investors in a research note. The firm cites the shifting competitive landscape for the downgrade.