On August 1, 2023, Benjamin Swinburne, a highly regarded Wall Street analyst at Morgan Stanley, reaffirmed his Underweight rating on Roku (NASDAQ:ROKU) while increasing the price target from $50 to $55. Swinburne, known for his expertise in the Services sector, covers a total of 63 stocks. As a part of Morgan Stanley’s team, he diligently analyzes the Communication Services and Technology sectors, providing valuable insights through his extensive portfolio of 1,121 price targets and ratings.
Interestingly, this is not the first time Morgan Stanley has maintained a sell rating for Roku. Back in February 2023, they expressed a similar sentiment towards the company’s stock. Moreover, in March 2023, Swinburne had the opportunity to present at the prestigious Morgan Stanley Technology, Media, and Telecom Conference, where he delved into the various business units within Roku, shedding light on the company’s operations and strategies.
Overall, Swinburne’s continued cautious stance on Roku, coupled with his comprehensive understanding of the Services sector, makes his analysis a valuable resource for investors seeking informed insights in the ever-evolving landscape of the stock market.
Mixed Growth Rates and Positive Future Expectations
On August 1, 2023, ROKU stock opened at $95.27, slightly lower than the previous day’s close of $96.28. Throughout the day, the stock’s price fluctuated within a range of $93.80 to $98.41. The trading volume for the day was 435,731, which is significantly lower than the average volume of 8,441,436 over the past three months. ROKU’s market capitalization stood at $12.6 billion.
ROKU’s earnings growth experienced a significant decline of -298.06% in the previous year. However, this year’s earnings growth showed a slight improvement with a decrease of -41.62%. Analysts predict a positive trend with an expected earnings growth of +18.97% over the next five years.
In terms of revenue growth, ROKU saw a positive growth rate of +13.09% in the last year. This indicates that the company’s sales have been increasing steadily. However, ROKU’s price-to-sales ratio is 1.79, suggesting that the stock may be slightly overvalued compared to its sales. The price-to-book ratio is 4.74, indicating that the stock may be trading at a premium compared to its book value.
ROKU’s price/earnings (P/E) ratio is not available, as indicated by “NM.” The net profit margin for the company is -15.93%, meaning that ROKU’s profitability is currently in the negative.
ROKU is a prominent player in the Consumer Durables sector and Electronics/Appliances industry. It is headquartered in San Jose, California. Unfortunately, there is no information available regarding the company’s executives.
ROKU’s next reporting date is scheduled for November 1, 2023. Analysts are forecasting an earnings per share (EPS) of -$1.17 for the current quarter. In the previous year, ROKU reported an annual revenue of $3.1 billion, but it incurred a net loss of -$498.0 million.
In conclusion, ROKU’s stock performance on August 1, 2023, was relatively stable, with a slight decrease in the stock price compared to the previous day’s close. The company’s earnings and revenue growth have shown mixed results, with negative growth rates in the past but positive expectations for the future. Investors should closely monitor ROKU’s financial performance and market trends to make informed decisions regarding their investments in the company.
Roku Inc Stock Analysis: Consensus Among Analysts to Buy Despite Projected Decrease in Value
On August 1, 2023, Roku Inc’s stock performance was closely monitored by investors, as they analyzed the company’s future prospects. According to data from CNN Money, 25 analysts offered 12-month price forecasts for Roku Inc, with a median target of $84.00. The high estimate was $95.00, while the low estimate stood at $50.00.
Despite the projected decrease in stock value, there is a current consensus among 32 polled investment analysts to buy stock in Roku Inc. This rating has remained steady since July, when it was upgraded from a hold rating.
It is important to consider other factors that may influence Roku Inc’s stock performance. One such factor is the company’s current financial performance. In the current quarter, Roku Inc reported earnings per share of -$1.17, which indicates a loss. However, the company’s sales stood at $809.3 million, indicating a strong revenue stream.
Investors should also pay attention to the reporting date for Roku Inc’s financial results, which is scheduled for November 1. This date will provide further insights into the company’s performance and may impact its stock value.
In conclusion, despite the median target price forecast indicating a potential decrease in Roku Inc’s stock value, the consensus among investment analysts is to buy stock in the company. Investors should closely monitor the company’s financial performance and the upcoming reporting date for further insights into its prospects.
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