Shares of Roku Inc (ROKU  ) were pulling back Thursday after the company updated its third-quarter guidance.

Needham On Roku

Analyst Laura Martin maintained a Buy rating on Roku and raised the price target from $85 to $100.

Roku raised its revenue and adjusted EBITDA guidance for the third quarter, attributable in part to a one-time write-off in the back half of 2023, Martin said in a note.

Roku's new CFO Dan Jedda was trained at Amazon and "brings a FCF-first focus" to the company, the analyst said.

"We estimate that Roku's OpEx will fall by about $110mm y/y in 2024, of which $60mm benefits both FCF and Adj EBITDA," she added.

Benchmark On Roku

Analyst Daniel Kurnos reiterated a Buy rating while lifting the price target from $89 to $115.

Roku's narrative of "striking a healthier balance between growth and profitability" has changed significantly, which "should give investors increased confidence in a much stronger cash flow profile even at more modest scale, Kurnos said.

Although the company has guided to revenue and EBITDA higher than Street expectations, the 2024 consensus may not "change too materially given the ongoing uncertainty in the macro, softness in scatter, and the puts and takes around adjusted EBITDA, including stock comp assumptions and incremental rehiring," the analyst added.

ROKU Price Action: Shares of Roku were down 1.98% at $84.48 Thursday morning.