Wolfe upgrades Roku to Outperform at on falling risks, accelerating growth

As previously reported, Wolfe Research upgraded Roku to Outperform from Peer Perform with a $93 price target. Amid industry and Roku-specific fears about connected TV, or CTV, ad sales, management’s rising focus on monetization supports acceleration and “should bury the profitability debate,” says the analyst, who lifted the firm’s estimates above consensus. The company’s recently trimmed cost structure, evolving sales strategies, and successful defense of its lead in connected TV have convinced Wolfe that Roku’s fundamental risks are falling while its sales growth is poised to accelerate, the analyst tells investors.