Needham analyst Laura Martin lowered her price target on Roku to $45, reducing her FY19 user addtion forecasts by 20% or 1M to 5M as a result of "rising political tensions with China" that may "negatively impact Chinese-made TV sales in the U.S." Martin estimates up to 45% of Roku's total user additions in FY18 coming from Chinese-made TVs, also lowering her FY19 EPS view to (32c) from 3c. Longer term, the analyst keeps her Buy rating on Roku, citing the scale potential of its active 32M user base, lengthening engagement from the current 3 hour per day per household viewing, and the increasing number of its users without a linear TV bundle being reached by advertisers.