Needham Reiterates Buy Rating on Roku Inc. (ROKU)

Needham analyst Laura Martin reiterated a Buy rating and $100.00 price target on Roku Inc. (NASDAQ: ROKU).

The analyst commentd: "In this report, we fine tune our FY24 estimates for Roku, reiterate our FY25 estimates, and introduce FY26 ests. For 3Q24, we still project revs of $1.01B (up 11% y/y), and Adj EBITDA of $45.2mm (up 4% y/y). We make no changes to our Platform revs of $854.5mm (up 9% y/y) with a GP of $55.9mm (up 21% y/y and a 53% margin). However, we fine tune our rev allocations within Platform so that Video Advertising rises 8% y/y (1% above our prior est), exactly offset by Audience Devt revs up 1% y/y (4% below our prior est). We make no changes to our Devices revs of $155.8mm (up 24% y/y and negative GM of 10%). We still est Active accounts at 84.4mm at 9/30/24, up 11% y/y and up 0.8mm q/q, while total hours streamed will reach 30.4B, up 14% y/y."

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

Shares of Roku Inc. closed at $74.67 yesterday.

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