Loop Capital Reiterates Hold Rating on Roku Inc. (ROKU)

Loop Capital analyst Alan Gould reiterated a Hold rating and $70.00 price target on Roku Inc. (NASDAQ: ROKU).

The analyst commented: "The fact that TTD has been working on its own TV operating system is not new and not the first threat Roku has had to it OS market share. In late August Lowpass reported that TTD was offering device makers a more favorable revenue share and that it has already reached a deal with one manufacturer. While we are not changing our opinion on Roku, we were surprised with the 5% drop on the announcement last week and the lack of any rebound since then. We remain neutral as we would like to see platform revenue acceleration from the low-double-digit range, which ironically could come from Roku's recent integration into TTD's DSP, but note the valuation is not demanding at about 2x revenue with the company both adjusted EBITDA and free cash flow positive. We remain Hold rated with a $70 PT."

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 $68.22 yesterday.

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