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Susquehanna remains bullish on Roku long-term despite shares PT decrease
https://au.investing.com/news/company-news/susquehanna-remains-bullish-on-roku-longterm-despite-shares-pt-decrease-93CH-3222876
Published 29/04/2024, 10:24 pm

On Monday, Susquehanna maintained a Positive rating on Roku Inc. (NASDAQ: NASDAQ:ROKU) but lowered the price target to $80 from the previous $110.

The adjustment follows Roku's first-quarter earnings, which surpassed expectations in terms of revenue and profitability. Despite a generally fine outlook for the second quarter, the company faces challenges such as tougher comparisons and the impact of 606 accounting on platform revenue growth.

Roku's first-quarter performance indicated solid results, and while the second-quarter projections are generally positive, certain factors are expected to affect platform revenue growth. The company anticipates that platform growth will stabilize or potentially improve in the second half of the year. Seasonal increases in spending are forecasted to moderate EBITDA in the latter half, specifically impacting the sales and marketing line for devices.

Susquehanna's report suggests that Roku's journey may require time to fully develop, but the firm remains optimistic about the company's trajectory. Roku is seen as taking appropriate steps to strengthen its position and capitalize on the expansive connected TV (CTV) advertising market. The report indicates a belief that Roku is among the best-equipped companies to seize this significant opportunity in the advertising space.

In summary, while Roku is navigating through some complexities in the short term, the long-term perspective held by Susquehanna remains bullish. The lowered price target reflects immediate challenges but does not diminish the firm's confidence in Roku's strategic moves and its potential in the growing CTV advertising sector.