Jeffrey Wlodarczak, the Principal and Internet/Media/Communications Analyst for Pivotal Research Group, has given a good look at Roku and made some adjustments to his firm’s “above-consensus” Q4 financial expectations. But, at the same time, Wlodarczak has “modestly raised” his 2024 EBITDA and free cash flow expectations.
This, in turn, led Pivotal to raise its year-end 2024 target price for Roku stock.
As such, Pivotal’s target price for Roku, which trades on the Nasdaq GlobalSelect market, is being upped to $85 from $75.
However, this still reflects a value that’s less than the $95 range Roku is presently trading at, suggesting in one year it will nevertheless be valued at a lesser dollar amount.
Wlodarczak’s adjustment comes after a “choppy” Q4 scatter market and difficult comps impacted Roku in Q4 2023. That said, “aggressive cost control” efforts are making 2024 look good. This, along with “plummeting treasury yields,” means Roku is poised to have a good year.
Pivotal maintains its “Hold” rating on Roku, which recently hit a year-to-date high and remains well above the mid-$41 price range seen in December 2022.
