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What is a Fair Price for Roku Stock?

Published in Stock Price Target 2 mins read

Based on current analyst consensus, a fair price for Roku stock is approximately $81.17.

Analyst Price Targets for Roku (ROKU)

Analyst price targets represent the median expectation of what a stock's price will be within a specific timeframe, typically 12 months. These targets are derived from in-depth research, financial modeling, and an assessment of a company's fundamentals, growth prospects, and market conditions. They provide investors with a professional perspective on a stock's potential valuation.

Here is a summary of the recent analyst price targets for Roku:

Metric Price Target (USD) Change from Last Price
Average Target $81.17 -0.79%
High Forecast $100.00 +22.21%
Low Forecast $55.00 -32.78%
Last Price $81.82 N/A

The average price target of $81.17 suggests a slight potential downside of 0.79% from the last traded price of $81.82. This indicates that, on average, analysts believe the stock is currently trading very close to its fair value, with limited immediate upside based on their collective outlook. However, the range between the high forecast of $100.00 and the low forecast of $55.00 highlights the varying opinions and potential volatility in analysts' expectations for Roku's future performance.

Understanding the Implications of Price Targets

It's important to understand what these price targets signify for investors:

  • Guidance, Not Guarantees: Price targets are professional estimations and should not be considered guaranteed future prices. They are subject to change based on new information, market shifts, or company performance.
  • Varying Perspectives: The range between the high and low forecasts shows that analysts have different views on Roku's potential. Some see significant upside, while others project a notable decline.
  • Basis for Research: These targets are typically the result of comprehensive research, including evaluating financial statements, industry trends, competitive landscape, and management's strategies.
  • Potential Valuation: They offer a glimpse into how market professionals perceive the company's intrinsic value and future earnings potential. When the current price is near or above the average target, it may suggest that the stock is fully valued or even overvalued according to the consensus. Conversely, if the price is significantly below the average target, it could indicate an undervalued opportunity.