08:35 AM EDT, 04/26/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

ROKU ( ROKU ) has substantially reduced operating expense, but more work ahead is needed to drive top line growth. We keep our $67 target price ($80 consensus) using a forward P/S of 2.5x versus peer group average of 2.6x. Given lower costs, we narrow our 2024 LPS to -$1.60 (-$1.90) and 2025's to -$1.00 (-$1.10). Our revenue forecast is $3.9B for '24 and $4.4B for '25. ROKU ( ROKU ) posts Q1 LPS of -$0.35 (-$0.64 consensus) with $882M revenue. Operating expense was $460M vs. $550M a year ago driven by lower R&D, sales & marketing, and G&A expenses. ROKU's ( ROKU ) Q1 net subscriber adds were +1.6M vs. Q4 to 81.6M, and ARPU widened by $0.73 to $40.65 per user. In Q1, the Platform segment realized 19% Y/Y revenue growth (86% of total revenue) and gross margins 52.2% vs. 55.3% in Q4. Devices was +19% (14%), with segment gross margin at -4.8% vs. -13.2% in Q4. Home screen development is a positive with users choice like "NFL Zone." ROKU ( ROKU ) guided for moderate adj. EBITDA in next two quarters ($41M in Q1) due to seasonality in device sales.