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KeyBanc analysts downgraded Roku (NASDAQ:ROKU) shares to Sector Weight from Overweight. The downgrade reflects lowered 2022E, 2023E, and 2024E revenue estimates by 1%, 16%, and 20%, respectively.
They cited three key reasons why they moved to the sidelines on Roku stock.
“We expect Roku growth likely remains sub-seasonal in 1H23E, which makes it difficult to envision revenue growth in 2023E or EBITDA profitability in 2024E,” the analysts added.
KeyBanc moving lower on the rating scale marks the 5th downgrade for Roku in November only and the 11th since July.
As of 09:10 ET (14:10 GMT), Roku shares are down more than 4.2% in pre-market Tuesday. Shares are down over 76% year-to-date (YTD).
