Wedbush analyst Michael Pachter initiated Roku with a Neutral rating and $73 price target. While Roku has built an "exceptional" platform on the back of its players and is positioning itself as the best-in-class option for OTT advertising, Roku's growth is fully priced into its share price, Pachter tells investors in a research note. The analyst believes that any pullback may provide an opportunity to build a position.

Wedbush lowered the firm's price target on Roku to $80 from $120 and keeps an Outperform rating on the shares ahead of the company reporting Q1 results after market close on Thursday, April 25. The firm expects Roku to report Q1 revenue of $855M, versus consensus of $849M and guidance of $850M, along with adjusted EBITDA of $5M, versus consensus of $3M and guidance of breakeven. However, the firm applies a lower multiple on its discounted 2030 EPS estimate, stating that while it had been previously sanguine about Roku's e-commerce opportunity, it is "less so" as it became aware of some competitive disadvantages for Roku and its need to ramp investment to rise to the level of competition in the space.