Movement Alert|Roku Rises 5.02% in Regular Trading, Morgan Stanley Raises Target Price to $170

Market Focus
Jun 04

On June 4, Roku rose 5.02% in regular trading, trading at $128.38 USD/share, with trading volume of $87.52 million. The stock rebounded sharply following a sector-wide selloff in the prior session.

On the news front, Morgan Stanley raised its price target on Roku from $150 to $170 while maintaining an Overweight rating, citing the company's transformation of its home screen into a personalized, dynamic experience. The firm believes this initiative is likely to unlock advertising revenue and accelerate progress toward $1 billion in free cash flow. New disclosures reveal that Roku's advertising gross margins exceeded 60% in Q1, while its subscription division has grown into a $2 billion annualized revenue stream.

Morgan Stanley expects Roku to outpace conservative management guidance, driven by deepening ad partnerships with Amazon and Alphabet's Google DV360, alongside cyclical tailwinds from political advertising and the FIFA World Cup. Strong cost discipline under CFO Dan Jedda is also expected to support margin expansion. The average analyst price target stands at $148.04 according to FactSet.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)

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