FMP
Sep 25, 2024 2:06 PM - Davit Kirakosyan
Image credit: FMP
Citi analysts raised their price target for Roku (NASDAQ:ROKU) to $77 from $60, reflecting increased confidence in the company’s efforts to accelerate platform revenue growth. Despite maintaining a Neutral rating, Citi's new target signals optimism in Roku's future performance.
The updated price target is now based on a multiple of free cash flow (FCF), a shift from the previous valuation method that focused on enterprise value per subscriber (EV-sub). This change stems from Roku’s recent success in generating FCF, management's commitment to boosting cash flow, and expectations for stronger FCF generation going forward. Citi now values Roku at approximately 34 times its projected 2025 FCF, along with an additional $16 per share in net cash, leading to the new target price.
Roku’s shares have surged around 45% since its second-quarter earnings report in 2024, driven by growing investor confidence in the company’s strategic initiatives. These include increasing subscription revenue, improving ad fill rates through third-party Demand-Side Platforms (DSPs), and better monetizing the home screen.
Citi believes Roku is well-positioned to capture a larger share of the global digital video advertising market, with the consensus estimates appearing reasonable for future growth, excluding the unusual impacts seen during the COVID period.
May 14, 2024 11:41 AM - Sanzhi Kobzhan
A stock's target price, also known as its fair value, is an indication of what a share can cost based on the company’s forecasted financial statements. It is important to know a stock's fair value to find undervalued stocks with great growth potential. Let's consider how investment analysts calculat...
May 16, 2024 8:06 PM - Gordon Thompson
On Thursday, May 16, 2024, Deutsche Bank upgraded its rating on NASDAQ:ASTS to Buy, maintaining a hold position. At the time of the announcement, ASTS was trading at $4.03. This decision was accompanied by an increase in the price target for AST SpaceMobile, raised to $22 from $19, as detailed in a ...
May 24, 2024 9:30 AM - Rajnish Katharotiya
Earnings call transcripts are invaluable resources for investors, analysts, and financial enthusiasts. They provide insights into a company's performance, strategy, and future outlook, making them essential for making informed investment decisions. With Financial Modeling Prep, Earnings Call Transcr...