Written by Sam Bogeda
Rock (NASDAQ: ) Pivotal Research Group’s stock rating was upgraded to “Hold” from “Sell” on Thursday, with the price target maintained at $60 per share.
An analyst at the firm explained that the firm has upgraded the stock as the stock has reached a level it sees as an “appropriate balance between risk and reward” and will generate profits on short positions.
“There has been no change in our estimates and our target price of $60 for early 2022. Our underlying view of the economy/market has changed somewhat given the recent encouraging inflation news, making a soft landing more realistic (but not in our base case),” the analyst wrote.
The analyst added that their still relatively cautious rating is due to the fact that Roku appears to have been hit much harder than its advertising peers, the fact that they have a negative view of the current advertising environment and believe it is likely to worsen , before getting better. , and the company is “massively” increasing its costs.
“Against what we believe to be a more encouraging backdrop and downgrade, we no longer view ROKU as a fundamental short at current valuation levels,” the analyst concluded.
