Shares of Roku were falling on Monday after Citi downgraded the stock and lowered its price target.
The firm lowered its rating on the streaming device maker from “neutral” to “sell” and lowered its price target to $50 from $53.
According to the firm, the increased competition in the TV streaming space is what prompted the downgrade. Citi also said that employees at Roku have been selling their stock.
Shares of Roku had fallen over 4% on the downgrade. The stock has still seen gains of roughly 100% this year.
According to Citi, the changes in the streaming TV landscape could create greater competition in the space for Roku.
Apple TV+ from Apple will be available on Roku but wont serve ads which hinders Roku’s revenue opportunity.
With large numbers of pay TV providers and smart TVs directly integrating apps into their platforms, “consumers may find fewer reasons to purchase OTT devices or use services like Roku,” Citi wrote.
Last week Guggenheim also downgraded Roku from “buy” to “neutral” and lowered its price target from $77 to $72.
Disclaimer: We have no position in Roku Inc. (NASDAQ: ROKU) and have not been compensated for this article.