Roku Inc
Roku Inc (NASDAQ: ROKU) provides streaming content to the TV in the US. The Company also provides advertising platform, streaming channels, streaming devices, and Roku TV around the world.
On 4 August 2021, Roku has scheduled its Q2 FY21 results for release.
Investment Rationale – SELL at USD 479.50
Risk Assessments
Recent News
New Agreement: On 27 May 2021, Roku announced a landmark agreement with Saban Films, which is Roku’s first-ever pay-one licensing agreement.
Financial Highlights for the quarterly period ended 31 March 2021 (as on 6 May 2021)
(Source: Company Website)
One Year Share Price Chart
(Data Source: REFINITIV, Analysis done by Kalkine Group)
Valuation Methodology: EV/Sales Approach (FY21) (Illustrative)
Conclusion
Roku is trading nearly at its 52-week high after yielding a remarkable return in the past year. Moreover, the Company might not be able to sustain the orders amid lockdown easing, inflationary pressure, and a widespread shortage of consumer electronics. As the macro environment is also uncertain, it is prudent to book profit at the present levels. The stock made a 52 week High and Low of USD 490.76 and USD 143.21, respectively.
Based on the robust notional gains, supply chain constraints, uncertain outlook, and unfavourable valuation conducted above, we have given a “SELL” stance on Roku Inc at the closing price of USD 479.50 (as on 26 July 2021), while we look forward to reinvesting when short-term uncertainties fade away.
*All forecasted figures and Industry Information have been taken from REFINITIV.
*The reference data in this report has been partly sourced from REFINITIV.
Disclaimer
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