Roku: Outperform @ $128

Roku Update: Live Blog

July 29, 2020
Market Price: $148 (July 28, 2020)

Personal Buy Rating:
-Buy Light (buy some) @ Market Price
-Buy Medium (buy more) @ 20% Discount
-Buy Heavy (buy many) @ 50% Discount

July 14, 2020
By Roy Philipose

Longer Term Outlook:
5 Year  ~ $381
Basis: The company will grow at least 26% per year for the next 5 years. Therefore, the security will be worth 3.1x more than the fair value price of $120 a share. 

Fair Value:  $120
Fair value is the value based on growth prospects and the company going private.

Roku is a major distribution hub for online TV content. Eventually, I see them developing their own content, which would make them even more valuable.


July 2, 2020

Roku (ROKU) is an Internet based TV platform featuring free and premium content. Roku has a mobile app and they are the standard OS on many new television sets. Roku generates revenue with partnerships and ads in-between shows. They have established a TV guide on their channel and they continue to add new content. Roku is in a great position to capitalize in the shift from traditional TV advertising to Internet TV advertising. The company is growing and the outlook is strong. Anthony Wood is Roku's CEO. 

- Roy Philipose, Independent Analyst

Stock rating: 
Outperform (Buy)

- Exceed S&P 500 (benchmark) over next 12 months.

Roku: Outperform
Current Price: $128 (closing price, 7/1/2020)
Market Cap: $14B
Fair Value: $120
Target Price 12M: Unknown (short-term target prices are hard to predict)
Reason: Growth

Longer Term Outlook
10 Year Price Outlook: $1,200 by 2030
Basis: The company will grow at least 26% per year for the next 10 years. Therefore, the security will be worth 10x more than the fair value price. 

Emerging Brand
Good Content
International Growth
TV Set Standard
Break-even to Profitable Operations
Competition (Netflix or Amazon may enter TV ads business)

Disclosure: Long Roku
Disclaimer: Investments may lose value

Copyright © Roy Philipose 2020. All rights reserved. 

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