KeyBanc analyst Justin Patterson downgraded Roku (ROKU) to Sector Weight from Overweight without a price target.

Positive fundamentals appear reflected in the share price, Patterson tells investors in a research note.

Investors have priced in positive news so Roku needs new catalysts to outperform, says the analyst. He believes international is the next catalyst for "narrative change" but says Roku is still in the early stages of its expansion and coming from behind in Asia and Europe.