- Roku’s labor productivity has been improving over the past 3 years.
- Analyst raises price target to $100.
- Up Next: Get 5 Dark Horse Stocks Wall Street Is Quietly Loading Up On
Roku Inc. ROKU is showing promising signs of growth as it enhances labor productivity, a key metric in today's competitive streaming industry, according to Needham.
The Roku Analyst: Analyst Laura Martin maintained a Buy rating, while raising the price target from $88 to $100.
The Roku Thesis: The company's total revenues per full-time equivalent (FTE) grew from $921,528 in 2021 to $1.2 million in 2024, Martin said in the note.
Check out other analyst stock ratings.
This translates to a 34% growth over the three years, she added.
"Roku had the 3rd highest growth rate in revenue-based labor efficiency among the large cap stocks we cover," behind only Amazon.com Inc AMZN and Meta Platforms Inc META, which recorded improvements of 40% and 35%, respectively, the analyst stated.
"We believe that new CFO Dan Jedda, who came to Roku in 2Q23, has been instrumental at driving this improvement, and we expect this positive trajectory to continue," she further wrote.
ROKU Price Action: Shares of Roku had declined by 0.16% to $88.00 at the time of publication on Wednesday.
Read More:
Photo: Shutterstock
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
