Needham & Company Starts VIZIO (VZIO) at Buy

Needham & Company analyst Laura Martin initiates coverage on VIZIO (NYSE: VZIO) with a Buy rating and a price target of $30.00.

The analyst comments "

What we like most about Vizio is that Roku has created a template that Vizio can follow to rapidly accelerate its ROIC by adding 65% gross margin Platform+ revenue to Vizio's 5% gross margin Smart TV sales. We believe Vizio has LT platform economics upside, with robust CTV advertising revenue upside in 2021. Mirroring Roku’s transition, we expect Vizio’s valuation multiple to expand with Platform+ revenue growth over the next 24 months, aided by the fact that its Platform+ revenue is growing 20x faster than its Device revenue. In addition, Platform+ gross profit dollars will "cross over" in the near-term, becoming larger than the Device gross profit dollars in 1Q21, we estimate. For FY21, we project Platform+ gross profit of $156mm, which is 56% higher than the $100mm we project for Devices."

For an analyst ratings summary and ratings history on VIZIO click here. For more ratings news on VIZIO click here.

Shares of VIZIO closed at $24.00 yesterday.

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