Update shared on02 Aug 2025
Fair value Increased 10%Roku's fair value outlook has improved as a result of rising net profit margins and a lower forward P/E ratio, prompting analysts to raise their consensus price target from $91.75 to $100.73.
What's in the News
- Roku announced a $400 million Class A share repurchase program, funded by existing cash and short-term investments, authorized by the Board and effective through December 31, 2026.
- A US District Court dismissed Roku’s attempt to have a global FRAND royalty rate set for the HEVC Advance Patent Pool, stating lack of jurisdiction and reinforcing that US courts cannot unilaterally set global patent rates.
- Roku and Amazon Ads formed an exclusive integration for advertisers via Amazon DSP, providing access to approximately 80 million US CTV households for logged-in, addressable advertising.
- Roku released its 2025 Select, Plus, and Pro Series TVs in the US, featuring new smart TV capabilities, enhanced picture quality, broader feature availability across lines, and expanded size options up to 85 inches.
Valuation Changes
Summary of Valuation Changes for Roku
- The Consensus Analyst Price Target has risen from $91.75 to $100.73.
- The Net Profit Margin for Roku has significantly risen from 5.17% to 5.97%.
- The Future P/E for Roku has fallen from 59.25x to 54.43x.
Disclaimer
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