ROKU stock was taking a beating Wednesday on news about Roku downgrades.
The first of the downgrades for Roku (NASDAQ:ROKU) stock comes from Loop Capital analysts. This Roku downgrade has the firm dropping the seller of streaming set-top boxes from a “Hold” rating to a “Sell” rating.
The Roku downgrades don’t stop with Loop Capital though. The stock got another downgrade from analysts at Macquarie as well. This downgrade has the firm bumping ROKU stock down from an “Outperform” rating to a new “Neutral” rating.
So what was the reason behind these Roku downgrades? Loop Capital analyst Alan Gould says that the downgrade to ROKU stock was due to its valuation. He believes the company doesn’t warrant a “Hold” rating at its current level, reports TheStreet.com.
The Roku downgrades today also come alongside some new price targets for the stock. Strangely enough, these price targets are increases. The first comes from Macquarie and it ups the price target for ROKU stock from $57 to $66. This is still about 7% lower than the stock’s closing price on Tuesday.
The second price target increase for ROKU stock today comes from SunTrust Robinson. This firm is bumping up its price target for the stock from $42 to $63. That’s down about 11% from the stock’s closing price yesterday. SunTrust didn’t provide any kind of update to its rating for ROKU stock, Schaeffer’s notes.
ROKU stock was down 12% as of Wednesday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.