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Investing.com - Benchmark maintained its Buy rating and $130.00 price target on Roku Inc. (NASDAQ:ROKU) ahead of the streaming platform’s third-quarter earnings report scheduled for Thursday. The stock, currently trading at $97.23, has shown impressive momentum with a 43% gain over the past six months. According to InvestingPro analysis, Roku maintains a strong financial health rating, with more cash than debt on its balance sheet.
The research firm identified Roku as one of its "2025 top ideas," noting that while consensus estimates aren’t problematic, buy-side expectations remain elevated with investors likely anticipating at least 2-3 percentage points of upside to platform revenue for both Q3 and Q4.
Benchmark pointed to positive third-quarter advertising spend revisions from Havas and Publicis, along with generally positive sentiment in the connected TV category, despite ongoing inventory and pricing headwinds that appear to be abating.
The firm also observed that concerns about significant market share loss to Walmart-Vizio seem to be diminishing, while Roku’s multi-year free cash flow narrative is gaining traction, especially among long-only investors.
Benchmark suggested that if expectations align more closely with management guidance and realistic medium-term targets are set, Roku could be "poised for a multi-year run."
In other recent news, Roku Inc. has received attention from several research firms regarding its stock rating and market position. Citizens has reiterated its Market Outperform rating for Roku, maintaining a price target of $145.00, highlighting the company’s strong international presence and market leadership in regions like Mexico and Canada. Needham also maintained its Buy rating with a $110.00 price target, identifying Roku as its top pick for 2025. Benchmark joined the chorus by reiterating a Buy rating and a $130.00 price target, expressing confidence in sustainable platform revenue growth based on discussions with Roku’s management.
In product news, Roku announced the launch of Philips Roku TVs in the U.S., featuring Ambilight technology, which enhances the viewing experience with ambient lighting that corresponds to on-screen content. This marks the first time the Ambilight system is available with Roku TV OS in the United States. These developments come as Roku continues to leverage its dominant position in the U.S. television operating system market, where it reaches over 50% of broadband households. The company is poised to focus on monetization in international markets where it has established a strong foothold.
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