KeyBanc analyst Justin Patterson downgraded Roku to Sector Weight from Overweight without a price target. The analyst says elements of his positive thesis, namely outsized growth in connected TV advertising and the company becoming a critical platform for media partners, have not manifested. Roku appears to be ceding market share, and has “greater tech debt in its AdTech stack than we envisioned,” Patterson tells investors in a research note. Since resolving these issues requires sustained investment, consensus estimates are “too optimistic” on 2023 and 2024 revenue and gross profit growth, contends Patterson. He believes Roku will be challenged to achieve profitability in 2024, which could pressure its valuation multiple.