11:32 AM EDT, 06/27/2024 (MT Newswires) -- Roku ( ROKU ) is on a path to profitability as it continues to expand its advertising capabilities, products and partnerships, Wedbush Securities said Thursday in a note to clients.

"Roku ( ROKU ) is significantly expanding its platform ad capabilities, now a full-funnel solution backed by [automatic content recognition] data available for advertisers to leverage in their campaigns," the firm said.

Wedbush said that in future quarters, it expects Roku's ( ROKU ) average revenue per user to remain flat as the company benefits from improving scatter trends, political advertising and sports-adjacent ads, offset by international expansion into regions with lower cost per mile.

"As we look forward, we expect Roku ( ROKU ) to see less volatility overall within the scatter market as it moves from solely taking traditional ad dollars... to a more diverse base of digital advertisers," the firm said.

Wedbush maintained Roku's ( ROKU ) outperform rating and $75 price target.

Price: 57.47, Change: +0.31, Percent Change: +0.54