BofA Securities Reiterates Buy Rating on Roku Inc. (ROKU), Says 2Q Estimates are Beatable

BofA Securities analyst Ruplu Bhattacharya reiterated a Buy rating and $86.00 price target on Roku Inc. (NASDAQ: ROKU).

"Roku reports F2Q23 after market close on Thurs July 27th. In our opinion, overall, the scatter Ad market remains weak, with some verticals likely showing incremental improvement including travel, health, automotive, and quick serve restaurants, while others like M&E and financial services likely remain pressured. Street is modeling F2Q/FY23 active account net adds of about 1mn & 7.4mn (not been this low since 2018/2017 despite Roku now in more geographies). The Street is modeling Platform revs for F2Q to remain mostly flat y/y, despite a 12 point easier y/y compare which reflects the weaker Ad market. We model F2Q platform GM to remain at the F1Q level (52.6%). The stock is typically volatile after earnings and options are indicating about 11% 1-day move. Our ests for F2Q/3Q remain unchanged, and PO stays at $86 on 3x EV/our 2023 rev est."

For an analyst ratings summary and ratings history on Roku Inc. click here. For more ratings news on Roku Inc. click here.

Shares of Roku Inc. closed at $71.47 yesterday.

You May Also Be Interested In

• JPMorgan Downgrades ASX Limited (ASX:AU) (ASXFY) to Neutral
• Nomura/Instinet Downgrades Korea Electric Power Corp. (015760:KS) (KEP) to Neutral
• Jefferies Starts Aehr Test Systems (AEHR) at Buy