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Wells upgrades Roku to Equal Weight on Roku Channel growth

Wells upgrades Roku to Equal Weight on Roku Channel growth

Wells Fargo upgraded Roku to Equal Weight from Underweight with a price target of $72, up from $50. The analyst thinks The Roku Channel will contribute to stronger growth as Roku improves monetization through third parties service providers. Roku Channel continues to be a share gainer in TV time and there is upside as monetization improves, the analyst tells investors in a research note. The firm’s model work supports stronger estimates with Q3 and Q4 Platform revenue growth of 11% and 14%, respectively, ahead of guidance and consensus.

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