Roku assumed with an Underperform at Jefferies

Jefferies assumed coverage of Roku with an Underperform rating and $50 price target. The firm believes second half of 2024 and 2025 estimates are too high given the tough second half compare from last year’s streaming service price increases, intensifying competition from new entrants like Amazon Prime Video, and sustained weakness in media and entertainment advertising spend. Roku has limited room for valuation improvement given expectations for negative revisions, the analyst tells investors in a research note.