Roku Inc. (ROKU) PT Raised to $550 at Needham & Company
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Needham & Company analyst Laura Martin raised the price target on Roku Inc. (NASDAQ: ROKU) to $550.00 (from $400.00) while maintaining a Buy rating.
The analyst commented, "ROKU's reported very strong 4Q20 results, at revenue of $649.9mm (up 58% y/y and 5% above our est) and EPS of $0.49 (above consensus and our estimate of a loss). There were 4 new upside value drivers (our view) from Roku's earnings call: 1) $150mm of 2020 EBITDA, of which 100% converted into cash from ops and 45% converted into FCF (ie, more 2020 FCF than NFLX); 2) growth in DataXu's CPA (cost per action) performance ads, which doubles Roku's TAM to add "below the line" DR revs; 3) OneView growth is pivoting advertisers faster toward buying programmatic ads on Roku at higher margins; and 4) Roku's intent to disclose additional international metrics (valuable because int'l subs pull down Roku's ST stats but maximize Roku's rev growth and LT FCF). We raise our estimates and PT, and prefer ROKU to NFLX."
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Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS View, Analyst PT Change
Related EntitiesNeedham & Company, Earnings
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