Roku downgraded to Sell from Hold at Pivotal Research

Pivotal Research analyst Jeffrey Wlodarczak downgraded Roku to Sell from Hold with a price target of $95, down from $350. The company reported an “overall mixed” Q4 as it issued a lower than forecast 2022 revenue outlook and decided to “massively ramp” operating expenses, which drove EBITDA guidance dramatically below expectations, Wlodarczak tells investors in a research note. In essence, Roku is going to grow revenue at a slower than expected pace in combination with a massive ramp in expenses, into potentially a global economic slowdown with increasing levels of competition, says the analyst.