Wall Street analysts have issued ratings for Roku, Inc. (NASDAQ: ROKU) stock amid the company’s roughly $22 billion acquisition by Fox Corp. (NASDAQ: FOXA).
On Tuesday, June 16, Finbold analyzed 11 Roku stock ratings issued after the acquisition by Fox. Piper Sandler’s (NYSE: PIPR) Thomas Champion downgraded Roku to neutral from overweight and raised his price target to $160 from $148.
Jefferies’ (NYSE: JEF) James Heaney downgraded the stock to hold from buy and lifted his target to $160 from $150. J.P. Morgan likewise stepped down to neutral, setting its target at the $160 deal price. Evercore ISI cut Roku to in line from outperform and trimmed its target to $160 from $185.
Baird downgraded the stock to neutral from outperform with a $160 target, citing a less attractive risk-to-reward after Roku’s run-up. Wolfe Research’s Peter Supino lowered Roku’s rating to peer perform from outperform, with a fair value of $149. Loop Capital downgraded the stock to hold from buy, while raising its target to $155 from $145.
Citizens JMP downgraded the stocks to market perform after earlier raising its target to $175 amid speculation about a sale. KeyBanc moved to sector weight from overweight. William Blair cut the stock to market perform from outperform and removed it from its Analyst Conviction List. Meanwhile, Fox Advisors set a $160 target on Roku stock.
Roku stock surges on $22 billion acquisition deal
ROKU stock surged more than 17% over the past five days, trading at about $141.54 at press time. As such, the company saw its market capitalization rise to approximately $20.9 billion.
Wall Street analysts expect the company’s stock to surge in the near future following the strategic acquisition deal.
“Roku pioneered streaming TV and scaled it into a leading CTV platform. Together, we intend to lead its next chapter,” Lachlan K. Murdoch, Executive Chair and CEO of Fox Corporation, said.
As such, bullish sentiment for the stock could increase in the near future, bolstered by robust fundamentals.
