Roku downgraded to Neutral from Buy at Guggenheim - InvestingChannel

Roku downgraded to Neutral from Buy at Guggenheim

Guggenheim analyst Michael Morris downgraded Roku to Neutral from Buy without a price target. The company’s Q4 outlook was the “primary surprise” in the Q3 results as it come in well below prior forecasts and implies revenue declines at both Roku’s Platform and Player segments with a softer TV scatter estimate the primary culprit, Morris tells investors in a research note. The analyst is concerned with the magnitude of a TV scatter environment impact saying Roku and connected TV at large should still be share takers even in a soft cyclical environment. He struggles to value the business “given the lack of detail from the company and the warning indicators.”

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