Piper Sandler analyst Thomas Champion downgraded Roku Inc. (NASDAQ: ROKU) from Overweight to Neutral with a price target of $160.00 (from $148.00)..

The analyst comments: “This morning, Fox Corporation (FOXA, not covered) announced a definitive agreement to acquire Roku for ~$160/share (~$22B enterprise value), paid in ~60% cash and ~40% stock. We view this as a strong strategic fit. FOX marries its strong content with Roku's leading distribution platform and first-party data that add scale and can enhance the value proposition with advertisers. ROKU shareholders are expected to own a ~27% stake in the combined company. We downgrade to Neutral and move our PT to $160 to reflect the deal price, though ROKU shares could fluctuate with FOXA given the equity consideration.”

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Shares of Roku Inc. closed at $140.90 yesterday.