Roku Stock Gets Downgraded. Is This Analyst Right?
Long-time Roku (NASDAQ: ROKU) stock bull from KeyBanc Capital Markets, Justin Patterson, isn't so optimistic these days. The analyst lowered his rating on the stock this week, changing it from sector overweight to sector weight -- ratings that are similar to buy and hold, respectively. In addition, the analyst removed its 12-month $72 price target. The move comes after shares have been crushed this year, falling more than 75% as of this writing.
What's behind the analyst's more pessimistic outlook for the company? It boils down to the company simply not performing as well as expected, he explains. In other words, there are indications that the company may be losing market share in the important connected TV market instead of gaining market share.
But is the analyst right? Or is he pulling the plug at the exact time the stock is becoming attractive?
Source Fool.com
