.September 25, 2024 10:06 AM

Citi analysts raised Roku’s price target to $77 from $60, citing confidence in the company’s platform revenue growth. The new target is based on a multiple of free cash flow, reflecting Roku’s success in generating FCF and management’s commitment to boosting cash flow.

Roku’s shares have surged 45% since its Q2 earnings report, driven by investor confidence in strategic initiatives like increasing subscription revenue and improving ad fill rates. Citi believes Roku is well-positioned to capture a larger share of the global digital video advertising market.

Despite maintaining a Neutral rating, Citi’s optimism in Roku’s future performance is evident in the raised price target. The company’s success in generating free cash flow and strategic initiatives have led to increased confidence in its growth potential.