Roku(US:ROKU) Benzingaยท2025-07-10 15:40Group 1 - Key Point 1: Keybanc analyst Justin Patterson upgraded Roku from Sector Weight to Overweight with a price target of $115, citing improvements in monetization and expense discipline [1] - Key Point 2: Roku's projected EBITDA for 2025 and 2026 has been raised by 4% and 6% to $362 million and $530 million, respectively, both exceeding Street consensus [1] - Key Point 3: The analyst established 2027 revenue at $6.0 billion and EBITDA at $743 million, which are 7% and 12% above Street estimates [1] Group 2 - Key Point 1: From June 30, 2022, to June 30, 2025, Roku shares increased by 7%, significantly lagging behind the NASDAQ's 85% gain, attributed to slower scaling back of investments and reliance on the OneView platform [2] - Key Point 2: Roku has a highly engaged audience, with users streaming 35.8 billion hours in Q1, reflecting a 17% year-over-year growth, and The Roku Channel hours increasing by 84% year-over-year [3] - Key Point 3: The analyst expects a shift in advertising budgets from legacy channels to CTV as ad innovation increases and sports content moves to CTV [3] Group 3 - Key Point 1: Roku is considered a "self-help" story, similar to other strong performers in the consumer Internet space over the past three years [4] - Key Point 2: Roku has made three key shifts, including establishing partnerships with The Trade Desk and Amazon, which are expected to improve fill rates and sustain mid-teens revenue growth [5] - Key Point 3: The company is focusing on home screen monetization and specific ad verticals, reducing reliance on media and entertainment while preparing for the political cycle [6] Group 4 - Key Point 1: Roku has imposed expense discipline, aiming for GAAP profitability and free cash flow generation, with more focus on headcount and incremental investments [6] - Key Point 2: Projected second-quarter revenue is $1.08 billion with an EPS of $(0.14) [7] - Key Point 3: Roku stock is currently trading higher by 0.81% to $89.37 [7]