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To buy, hold or sell Roku, this is the question



<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The street is everywhere when it comes to Roku Inc. ( ROKU Get the report .) In just the last three days, the streaming player company received a buy, hold and sell rating from Wall Street analysts. last week, Roku is one of the highest stock trends based on the Trending Stock tool . & nbsp; & nbsp; "data-reactid =" 1
1 "> The street is everywhere when it comes to Roku Inc. ( ROKU Take the report ). In just the last three days, the streaming player company received a Buy, Hold and Sell rating from Wall Street analysts. With 7 ratings provided in the last week, Roku is one of the highest equity trends based on TipRanks' Trend Stocks tool.

The estimates come on the heels of his 27% reductions in the last five days. Given that, it should be noted that the shares have increased so far by 253%.

With all this in mind, we wanted to dig a little deeper to determine whether investors should dump Roku or still make a convincing investment.

Here's what we understand.

Bad News

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) –sm" type = "text" content = "Part of the current stock price weakness comes after Pivotal Research Jeffrey Wlodarczak initiated a cover sale on September 23. The intense competition that Roku faces is the key driver of its bearish thesis. "data-reactid =" 16 "> Part of the current weakness in the stock price comes after Pivotal Research's Jeffrey Wlodarczak initiated the sale with a sale on September 23. The intense competition facing Roku is the key driver of its

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Comcast ( CMCSA – [19659012] Take a Report ) struck Roku on September 18th when it announced the launch of its new free broadband service for its broadband customers. The service has several services, the most notable being its access to content from multiple streaming platforms. "data-reactid =" 17 "> Comcast ( CMCSA Get Report ) struck Roku on September 18 when it announced the launch of its new free broadband plug-in service to its broadband customers. The service has several services, the most notable being its access to content from multiple streaming platforms.

Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm "type =" text "content =" Roku's business is also under threat from Apple's new streaming service ( AAPL ), Apple TV +, which could impede its ability to compete in the space of Streaming d devices. "data-reactid =" 18 "> Roku's business is also under threat from Apple's new streaming service ( AAPL ), Apple TV +, which could impede its ability to compete in streaming space

As a result, the 4.5-star analyst considers Rocky "dramatically overpriced."

"While Rocky's management deserves credit for the asset they created, everyone is aware that the living room is too important, and the big boys (led from CMCSA) with massive leverage is likely to make ROKU much more difficult to grow. orend is likely to zero in on OTTs and put a lot of pressure on the division of advertising revenue, "he noted. Based on all of the above factors, Wlodarczak set a $ 60 price tag along with rating that shows a 45% drop.

Not everything is darkness and fate for Rocky

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – As new competition emerges, Macquarie analyst Tim Nolen also warns investors to be careful. Given that, he points out that Roku has a lot to do. "data-reactid =" 22 "> As new competition emerges, Macquarie analyst Tim Nolen also warns investors to be careful, saying that Roku has a lot to do.

As part of its ongoing In an effort to improve the products it offers, Roku has announced that it has updated its Roku Express and Roku Ultra streaming players.The Express, which starts at $ 29.99, is 10% smaller than the previous model and has HD streaming. expensive Ultra player priced at $ 99.99 and upgraded with improved hardware, lost remote locator, improved

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Yes we're not talking about teaming up with Walmart ( WMT ) and Best Buy ( BBY ) to offer customers Roku Express + for $ 39.99, Express with voice remote and Roku Ultra LT , the lighter Ultra model for $ 79.99. Best Buy will also have the exclusive rights to sell the Streaming Stick + Headset Edition (HE). "data-reactid =" 24 "> Not to mention that it has teamed up with Walmart ( WMT ) and Best Buy ( BBY ) to offer Roku Express + customers $ 39.99, Express with Remote Voice and Roku Ultra LT, Lighter Ultra for $ 79.99 Best Buy will also have exclusive rights to sell the Streaming Stick + Headphone Edition (HE).

All this prompted Nollen reaffirms its Hold rating and $ 110 price target on September 23. The price objective shows less than 1% upside potential.

Some analysts take a more bullish approach

Laura Martin, of Needham, does not believe the decline in hard sales "Even if tomorrow, Roku's hardware sales go down to zero, hardware sales represent a total of 5% of Roku's revenue contribution – that is, $ 27 million of $ 500 million. $ 201 gross profit for Roku in 2019, so the financial shortfall will be minimal, "she explained.

It adds that Roku's customer base is made up of more economical consumers than competitors. In addition, the company's strategy is to deal with the family's second, third, or even fourth television, which is often cheaper and of lower quality than living room TVs. "Because Comcast only gives one free OTT box to its new modem customers, and all other Comcast OTT boxes will continue to be charged $ 5 per month ($ 60 / year) by Comcast, we expect Roku and Roku TVs which cost $ 30 to $ 60 to continue to make money (ie, be the best choice) for TV # 2, 3 and 4, "she commented.

All of this lends itself to Martin's conclusion that Rocky's bears should be wary. With that in mind, the five-star analyst reiterated his buy rating and price target of $ 150 on the same day as Wlodarczak. According to her, shares could grow by 39% over the next twelve months.

Another top analyst is even more bullish than Martin. D.A. Tom Forte of Davidson set the highest price target for Rocky on September 19, reaching $ 185. His price target shows his confidence in Rocky's ability to earn 71% over the next twelve months.

Bottom line

There is no doubt that the rest of the Street has mixed feelings about Rock. Over the last three months, 8 ratings have been assigned to the streaming platform, 5 conducted and 2 sold to give a moderate buyer consensus. The average price of $ 124 implies a 14% upside potential.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = " Learn More About Your Favorite Stocks Analysts with the Best Analytical Stocks tool "data-reactid =" 53 "> Learn more about analysts' favorite stocks with the Best Analytical Stocks tool


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