Wolfe Research Reiterates Outperform Rating on Roku Inc. (ROKU)

Wolfe Research analyst Peter Supino reiterated an Outperform rating and $93.00 price target on Roku Inc. (NASDAQ: ROKU)

The analyst comments "Roku's Platform segment is a source of opportunity & frustration for investors. To the positive, its multiple rev. streams & high gross margins directionally link Roku's future to streaming's secular expansion. Analytically, the Platform segment's limited disclosure & multiple businesses make it a "black box" & a challenge to forecast. In this report, we use our mosaic of company reports, historical commentary & 3P data to provide illustrative ests. of the Platform components. We analyze & model how Roku generates Platform rev. across 3 broad categories: content video ads, M&E / home screen, streaming services distribution. While our analysis isn't 100% representative of Roku's Platform business, w/ rev. intertwined & ads monetized by audience, not content, our analysis supports more focused forecasting of Roku's key growth initiatives: 3P DSP partnerships & streaming services distribution. This exercise enhances our confidence Roku's Platform segment will achieveat least +mid-teens % sales CAGR thru F'27. Seeing opex grow +L/MSD%, we forecast above-cons. F'26 FCF of ~$600M. We reiterate Outperform."

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 $83.00 yesterday.

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