(Bloomberg) – Roku Inc.’s shares fell on Friday, which meant that the first rally came after its fourth quarter results were better than expected.
The analysts were largely positive about the quarter, the latest to show strong momentum at the video-streaming platform and consumers are cutting the rope on conventional cable services and moving towards services like Netflix or Disney +.
However, the adjusted loss per share represents less than usual expectations for the company. In addition, a number of firms expressed concern about the valuation of the stock after a recent boom, and said that the Ebitda guide looked at light.
Shares decreased by 7.8% after an earlier spiral of 8.7%. The stock remains lower than 20% from the closure of the records, although it increased by more than 30% of low land in September, and remains more than 300% since the beginning of 2019.
Here’s what the analysts say about the results:
Macquarie Research, Tim Nollen
The expectation is “slightly lower than our bullish estimates,” due to greater investment costs and “more measured international implementation” than expected.
It looks at a year loss of $ 1.33 share, compared to an advance view of losing 38 cents share.
Better performance, target prices $ 170.
Loop Capital Markets, Alan Gould
“While the company has been very successful, there is still huge potential competition.” T It is “difficult to protect the enterprise value of $ 18 billion.” T
Selling, price target of $ 80.
SunTrust Robinson Humphrey, Matthew Thornton
Active account additions were “well ahead of consensus,” probably Disney + involved. However, Ebitda’s view is “much less than consensus,” and competitive platforms could put pressure on the Roku edge.
“Roku continues to operate and is well placed in the secular transition to internet television.” T
Keep, price target $ 160.
Securities Rosenblatt, Mark Zgutowicz
This was a “general quarter,” and the view is that Roku’s “enlargement and market leverage” increase the perception.
Signs of “worthwhile” international growth ahead.
Buy, price drawn down to $ 190 from $ 159.
RBC Capital Markets, Mark Mahaney
The company’s platform business looks “like a sustainable 50% grower.” The core elements were “solid” in the quarter, with only “very small” deceleration in growth from “strong levels”.
Better performance, price $ 170 from $ 160.
Stephens, Kyle Evans
The view was “in line or above consensus when it reached most of its gross income and margin in its Platform segment.” T
A “heavy” launch cycle is likely to drive a streaming of demand video services in 2020 and 2021 [average revenue per user] higher for the foreseeable future. ”
“Investors wishing to disclose a linked T.V will continue to offer Roku upward.”
Over the target, prices target $ 155.
Susquehanna Financial Group, Shyam Patil
The report continues and the outlook continues to emphasize strong Roku momentum. Active accounts rose more than expected, and “the growth of participation was also strong.” T
Positive target, raised price to $ 170 from $ 150.
Guggenheim, Michael Morris
“Roku has an attractive position within a growing global steam market and ultimately has the potential to obtain a higher valuation.” T
Buy, price price $ 150.
What says Bloomberg Intelligence:
Roku is “still in a good position to take advantage of the terrible change from traditional traditional television, as the company strengthened its position as the television streaming platform No. 1 in the United States. ”
– Analysts Amine Bensaid
– Click here for the research
(Adds updates to evening trading Macquarie comments)
To contact the reporter on this story: Ryan Vlastelica in New York at [email protected]
To contact the editors responsible for this story: Catherine Larkin at [email protected], Scott Schnipper, Steven Fromm
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