Roku Price Targets Lowered Across the Board

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Roku Price Targets Lowered Across the Board
Credit: © Reuters.

By Sam Boughedda — Several analysts slashed their prices targets on  Roku Inc (NASDAQ: ROKU ) after its earnings report.

The analysts cited various reasons for the reductions, from the company's fourth quarter outlook to supply chain issues. 

At Pivotal Research, Roku's share price target was lowered to $350 from $410, with analyst Jeffrey Wlodarczak saying the company reported weaker than expected Q3 new active accounts and a worse than expected Q4 financial guidance as supply chain issues hit TV sales. 

{{0|Deutsche Bank} analyst Jeffrey Rand said the company reported a "mixed" Q3. Rand believes macro uncertainty around supply chain constraints and inflationary costs will have a more significant impact on Roku than previously expected. As a result, rand lowered Roku's price target $400 from $500, keeping an overweight rating.

Justin Patterson at KeyBanc lowered Roku's price target to $305 from $350, stating that he expects supply chain headwinds to have a larger impact on net adds. 

Steven Cahall at Wells Fargo stated the company's outlook is weighed down by global inventory challenges. Cahall put a price target of $305 on the shares, down from $350. However, he kept the equal weight rating. 

 Morgan Stanley analyst Benjamin Swinburne said the company's Q4 guidance suggests "a surprising revenue declaration." As a result, Swinburne lowered his firm's price target on Roku to $295 from $310. 

Elsewhere, Loop Capital lowered the Roku price target to $410, DA Davidson reduced it to $550, Wedbush lowered it to $365, and Oppenheimer dropped its Roku price target to $400. 

Roku shares have predictably fallen on Thursday, down over 7% at $291.27.

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