Piper Sandler analyst Matt Farrell lowered the firm’s price target on Roku to $65 from $81 and keeps a Neutral rating on the shares. While Roku delivered Q1 platform revenue and EBITDA ahead of expectations, with guidance also slightly above consensus, Piper thinks investors are left looking for more, as platform revenue acceleration is not until 2025 and sales and marketing spend in the second half weighs on EBITDA. At the same time, management appears to have a clear strategy moving forward and is focused on a three-pronged approach to accelerate platform revenue next year.
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