Roku Inc. (ROKU) PT Lowered to $75 at Evercore ISI, Added to Tactical Outperform List

Evercore ISI analyst Shweta Khajuria lowered the price target on Roku Inc. (NASDAQ: ROKU) to $75.00 (from $80.00) while maintaining a In Line rating.

The analyst comments "We are adding ROKU to our Tactical Outperform list – it’s a near-term (up to 6 months) trading call. At $60 per share, we see a reasonably attractive entry point in this ‘macro’ stock. ROKU underperforming despite 2023 estimates ticking up: ROKU shares have underperformed vs. Nasdaq post the company’s Q1 print. Specifically, since mid-June, ROKU shares are down -17% vs. Nasdaq -6%, while Roku’s 2023 Revenue and EBITDA estimates have risen three times—post Q1 and Q2 prints and post the recent intraQ 8k filing. Also, we see upside to the Street’s 2024 EBITDA estimates. As such, we believe this recent pullback against Roku’s estimate revisions (EV/GP multiple compression) and more importantly, the H2:23 setup (easing comps with improving Y/Y margins), in addition to upside to 2024 EBITDA, have created an interesting entry point, in our view. Hence, Tactical Outperform near-term; Maintain In Line rating."

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