Benzinga | Sep 24, 2021 12:58PM EDT

Wells Fargo Downgrades Roku - Read Why

* Wells Fargo analyst Steven Cahall downgraded Roku Inc (NASDAQ:ROKU) to Equal Weight from Overweight with a price target of $350, down from $488, implying an 8.8% upside.

* With ARPU expectations up 50% in 12 months, Cahall now sees less upside potential and feels that shares are more fully valued.

* While he likes the story, the stock's ability to outperform requires results that exceed already high expectations.

* The rating shortly follows Guggenheim, who just upgraded it to Buy and saw a 22% upside.

* Price Action: ROKU shares traded lower by 3.86% at $321.59 on the last check Friday.