Loop Capital raises price target for Roku but remains cautious

Loop Capital has raised the price target for Roku's stock from $70 to $80 but maintains its hold recommendation. Analysts at the firm inform investors that they do not expect Roku to be acquired by potential suitors such as Trade Desk or Netflix, even though these names have been mentioned in this context in the past. Loop Capital's experts maintain their neutral stance on Roku stock. For a more optimistic assessment, the analysts would like to see a mid-double-digit acceleration in platform revenues. Nevertheless, they emphasize that Roku's current valuation is not high, as the stock is positive in terms of estimated twofold revenue for 2025 for both adjusted EBITDA and free cash flow.