Shares of Roku Inc (NASDAQ:ROKU) rallied in early trading on Friday, after the company reported upbeat first-quarter results.
Here are the key analyst insights:
- KeyBanc Capital Markets analyst Justin Patterson maintained an Overweight rating, while raising the price target from $140 to $150.
- JPMorgan analyst Cory Carpenter reiterated an Overweight rating, and raised the price target from $125 to $150.
- Rosenblatt Securities analyst Barton Crockett reaffirmed a Buy rating, and raised the price target from $118 to $150.
- Needham analyst Laura Martin reiterated a Buy rating, while taking the price target higher from $110 to $140.
Check out other analyst stock ratings.
KeyBanc Capital Markets: Roku reported revenues of $1.25 billion EBITDA of $148 million. It topped consensus estimates of $1.20 billion and $131 million, respectively. Key positives of the quarter, Patterson said in a note, include:
- The company’s advertising revenue growth accelerated to 27% year-on-year, benefiting from third-party (3P) DSPs (demand-side platforms)
- This was the quarter for sign-ups, while subscriptions were growing by 30% year-on-year
Roku announced an expanded integration with Google DV360 in March. This gives Roku “broad coverage among major DSPs (Roku also works with the Amazon DSP, The Trade Desk, Yahoo, and FreeWheel),” the analyst wrote. …