.September 12, 2024 02:52:00 PM

Roku Inc. (NASDAQ:ROKU) saw its shares rise over 5% today after Wolfe Research analysts upgraded the stock to Outperform from Peerperform, with a price target of $93. The analysts believe that Roku’s risk profile has improved, citing efforts to streamline costs, refine sales strategies, and maintain dominance in the connected TV market. They also see potential for accelerated sales growth and believe the current enterprise value-to-sales ratio undervalues the company’s leadership in the CTV operating system space and its ability to generate free cash flow.

Overall, the analysts are bullish on Roku’s prospects, pointing to its improved risk profile and potential for accelerated sales growth. They believe that the company’s efforts to streamline costs, refine sales strategies, and maintain dominance in the connected TV market have reduced fundamental risks. Additionally, they see Roku’s current enterprise value-to-sales ratio as undervaluing its leadership in the CTV operating system space and its potential to generate free cash flow, reinforcing their positive outlook on the stock.