Sam Boughedda

Investing.com — Several analysts slashed their prices targets on  Roku After its earnings report, Inc (NASDAQ)

There were many reasons the analysts gave for these reductions. They ranged from company outlooks in the fourth quarter to supply chain issues. 

Pivotal Research reduced Roku’s share price target to $350 instead of $410. According to analyst Jeffrey Wlodarczak, Roku had reported weaker-than-expected Q3 new active accounts as well as a poorer Q4 financial direction due in part, because supply chain issues impacted television sales. 

{Deutsche Bank analyst Jeffrey Rand said the company reported a “mixed” Q3. Rand thinks that macro uncertainties around supply chain restrictions and inflationary costs are likely to have an even greater impact on Roku’s performance than originally anticipated. Rand reduced Roku’s target price to $400, from $500. This resulted in an overweight rating.

KeyBanc CEO Justin Patterson reduced Roku’s target price to $305, from $350. He stated that he believes supply chain headwinds have a greater effect on net adds. 

Steven Cahall at Wells Fargo stated the company’s outlook is weighed down by global inventory challenges. Cahall reduced the price target to $305 from $350. He maintained the same weight rating. 

 Morgan Stanley analyst Benjamin Swinburne said the company’s Q4 guidance suggests “a surprising revenue declaration.” Swinburne also lowered the price target for Roku from $310 to $295. 

Loop Capital lowered Roku’s price target by $410, DA Davidson decreased it to $550 and Wedbush lowered them to $365. Oppenheimer dropped their Roku price target from $400 to $400. 

Roku shares fell by over 7% on Thursday to $291.27.