Roku Stock Slips Despite Upbeat Analyst View On Platform Monetization: Retail’s Mixed
BofA noted that Roku’s array of streaming devices and TVs on which it operates, along with its user-friendly software, has helped it amass a market-leading position and substantial user base.
FollowRoku, Inc. (ROKU) shares fell sharply on Thursday despite the streaming device maker receiving a bullish recommendation from BofA Securities.
BofA reinstated coverage of Roku stock with a ‘Buy’ rating and a $100 price target, TheFly reported. The firm’s price target suggests there is scope for nearly 32% upside from current levels.
The brokerage said Roku provides access to a wide array of content through its hardware devices and operating software.
According to the firm, Roku is poised to enter the next phase of monetization, which will likely drive revenue and profitability growth for the foreseeable future.
BofA noted that Roku’s array of streaming devices and TVs on which it operates, along with its user-friendly software, has helped it amass a market-leading position and substantial user base. This user base actively engaged on the platform for 127 billion hours cumulatively in 2024, the brokerage added.
Roku reported fourth-quarter results in mid-February that topped expectations, with key operational metrics showing robust growth. The company’s first-quarter and full-year revenue guidance aligned with estimates. It also expects to be operating income positive for the full year 2026.
On Stocktwits, retail sentiment toward Roku stock turned to ‘neutral’ (46/100) by late Thursday, from the ‘bullish’ mood a day ago. The message volume tapered off to ‘low’ levels.
ROKU sentiment and message volume March 28, as of 12:57 am ET | Source: Stocktwits
A bearish user took exception to the fact that Roku continues to make a loss, adding that the stock is worth only $50.
On the other hand, a bullish user said Roku has the lowest fraud rate of any other platform and they expect more advertising dollars to flow in due to this key differentiator.
The stock ended Thursday’s session down 2.34% at $76.05. The Koyfin-compiled consensus price target for the stock is $102.45.
Roku stock has gained 2.30% this year, defying the broader market and tech sector weakness, although it is trading well off its COVID-19 peak of $490.76, hit in July 2021.
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