FMP
Feb 8, 2024 7:14 PM - Davit Kirakosyan(Last modified: Feb 9, 2024 1:05 AM)
Analysts at CFRA Research upgraded the rating for Roku (NASDAQ:ROKU) to Hold from Sell, while also increasing the target price to $89 from $75.
The analysts highlighted Roku's advantageous position amidst the shifting consumer preference towards TV video streaming from traditional linear networks, including pay TV and broadcast. Despite initial skepticism regarding Roku's path to profitability, which was expected to be more prolonged, the analysts acknowledged the market's growing enthusiasm for the transition to streaming.
As a result of this optimism, the analysts revised Roku's price target upwards by $14, adopting a forward Price/Sales ratio of 3.6x. This valuation is notably higher than the 2.0x average Price/Sales ratio of Roku's industry peers.
Despite the upgrade and target price adjustment, CFRA's earnings per share (EPS) projections for Roku remain the same, with an anticipated EPS of -$3.50 for 2023 and -$2.40 for 2024.
Oct 31, 2023 8:03 AM - Parth Sanghvi
Free cash flow to the firm (FCFF) and free cash flow to equity (FCFE) are two of the most important metrics used in financial modeling. Both metrics measure the amount of cash that is available to a company's shareholders and creditors, but there is a key difference between the two. FCFF measures...
Nov 25, 2023 6:39 AM - Parth Sanghvi
Choosing the Right Valuation Method: DCF vs. Comparable Companies Analysis Introduction: Valuation methods play a pivotal role in determining the fair value of a company, aiding investors in making informed investment decisions. Two commonly used methods, DCF Valuation and Comparable Companies A...
Dec 23, 2023 2:19 AM - Parth Sanghvi
Introduction: Discounted Cash Flow (DCF) analysis stands as a cornerstone in valuing investments, yet its efficacy is contingent upon various assumptions and methodologies. While a powerful tool, DCF analysis comes with inherent limitations and challenges that investors must acknowledge to make i...