Roku (NASDAQ:ROKU) stock is sliding lower on Thursday after the streaming services shares were downgraded by Citi analyst Jason Bazinet.
Bazinet dropped shares of ROKU stock from a “buy” rating to a “neutral” rating in a note to clients. For the record, the analysts’ consensus rating for ROKU shares is “hold” based on 26 opinions.
To go with that downgrade, the Citi analyst increased his price target for ROKU stock from $75 per share to $100 per share. That represents a potential 9.6% upside from yesterday’s close. For perspective, the analysts’ consensus price prediction for ROKU is $75.88 per share.
What’s Behind The ROKU Stock Downgrade?
Here’s what Bazinet said about ROKU shares in a note to clients obtained by StreetInsider.
“We see scope for Roku’s revenues to reaccelerate in 2024. However, given the run-up in the shares YTD (up ~120%), we believe this is largely priced into the equity. While both our estimates and target price move higher (the latter to $100 from $75), we are moving to the sidelines and downgrading Roku from Buy to Neutral. In short, we see limited upside from here.”
Today’s activity has some 192,000 shares changing hands. That’s well below its daily average trading volume of 8.3 million shares. With that comes a 2.4% drop for ROKY stock as of Thursday morning.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
