Roku no longer looks like 'compelling short,' Opco says in upgrade
Oppenheimer analyst Jason Helfstein upgraded Roku to Perform from Underperform saying the stock "no longer appears to be a compelling short." Shares have declined to $34 from a peak of $57, Helfstein tells investors in a research note. He sees Roku's risk/reward as "neutral to favorable," noting the company's 2018 guidance now reflects the negative impact of new accounting standard ASC 606. The Roku Channel being pulled forward to 2018, marketing dollars associated with the acceleration of skinny bundle adoption and potential automatic content recognition monetization represent potential positive catalysts, Helfstein writes. He does not have a price target on the shares. Roku in premarket trading is up 5%, or $1.60, to $35.45.