Roku Inc. (ROKU:NSD) Analysts see big upside in stock

STA Research
by: STA Research
Roku Inc.

Based on the Roku stock forecast from 21 analysts, the average analyst target price for Roku Inc is USD 151.61 over the next 12 months. Roku Inc’s average analyst rating is Buy. Stock Target Advisor’s own Roku stock forecast is Slightly Bullish, which is based on 8 positive signals and 5 negative signals. At the last closing, Roku stock price was USD 85.17Roku stock price has changed by -12.36% over the past week, -3.92% over the past month and -81.06% over the last year.

Roku, Inc., together with its subsidiaries, operates a TV streaming platform. The company operates in two segments, Platform and Player. It also provides digital and video advertising, content distribution, subscription, and billing services, as well as other commerce transactions, and brand sponsorships. It provides its products and services through retailers and distributors, as well as directly to customers through its website in the United States, Canada, the United Kingdom, France, Mexico, Brazil, Chile, Peru, North and South Americas, and Europe. Roku, Inc. was incorporated in 2002 and is headquartered in San Jose, California.

 

What we like:

High market capitalization:

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Superior risk adjusted returns:

The Roku stock price target has performed well, on a risk adjusted basis, compared to its sector peers (for a hold period of at least 12 months) and is in the top quartile.

Superior capital utilization:

The Roku stock price target has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

Low debt:

The company is less leveraged than its peers, and is among the top quartile, which makes it more flexible. However, do check the Roku stock predictions and look at its sector. Sometimes this is low because the company is not growing and has no growth potential.

Positive cash flow:

The Roku stock chart has shown positive total cash flow in the most recent four quarters.

Positive free cash flow:

The Roku stock chart has shown positive total free cash flow in the most recent four quarters.

Superior Earnings Growth:

The Roku stock chart has shown top quartile earnings growth in the previous 5 years compared to its sector.

Superior Revenue Growth:

The Roku stock price target has shown top quartile revenue growth in the previous 5 years compared to its sector.

 

What we don’t like:

High volatility:

The total returns for this company are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Overpriced compared to earnings:

The Roku stock price target is trading high compared to its peers on a price to earning basis and is above the sector median.

Overpriced compared to book value:

The Roku stock price target is trading high compared to its peers median on a price to book value basis.

Overpriced on cashflow basis:

The Roku stock price target is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Overpriced on free cash flow basis:

The Roku stock price target is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

 

Disclaimer

Stock Target Advisor is not a broker/dealer, investment advisor, or platform for making stock buying or selling decisions. Our goal is to democratize and simplify financial information through automated analysis, aggregation of stock information, and education to help investors with their research. No content on our site, blogs or newsletters constitutes – or should be understood as constituting – a recommendation to enter into any securities transactions or to engage in any of the investment strategies presented in our site content. We also cannot guarantee the accuracy of any information presented on our site and in our analysis.

Leave a Reply

Your email address will not be published.