Shares of Roku (NASDAQ: ROKU) dropped as much as 4.8% lower on Friday, hamstrung by a bearish note from Wells Fargo analyst Steven Cahall. The pessimistic call on the media-streaming technology stock counterbalanced an upgrade that drove Roku shares higher yesterday.
Cahall downgraded Roku from overweight to equal weight, meaning that the analyst now believes that Roku shares don't provide an exceptional investment opportunity anymore. He also lowered the price target on the stock from $450 to $388 per share. That's still 16% above Roku's closing price on Thursday, but the Wells Fargo analyst sees better ideas elsewhere because this stock looks "fully valued" at current prices.
On Thursday, Guggenheim analyst Michael Morris had upgraded the same stock from neutral to buy with a price target of $395 per share. Morris said that the company's position of leadership in the thriving digital media market should support strongly rising stock prices for years to come.
Source Fool.com