Analyst Steven Cahall from Wells Fargo maintained a Buy rating on Roku (ROKU – Research Report) and increased the price target to $100.00 from $93.00.
Steven Cahall has given his Buy rating due to a combination of factors, primarily focusing on Roku’s platform strength and its potential for future growth. Despite some noise in the near-term growth projections, Roku’s platform demonstrated a solid year-over-year growth of 17% in the first quarter of 2025, with expectations for continued growth in the subsequent quarters. Cahall believes that the platform’s revenue guidance for 2025, which indicates a mid-teens percentage growth, supports a positive outlook.
Additionally, Cahall notes that while there are margin pressures due to shifts in programmatic advertising and media and entertainment softness, Roku’s cost control measures and EBITDA projections remain strong. The company has reiterated its EBITDA guidance for 2025, and Cahall sees potential upside if Roku can maintain its revenue strength while managing costs effectively. The price target has been adjusted to $100, reflecting confidence in Roku’s resilience and ability to manage device losses more efficiently.
In another report released today, Pivotal Research also reiterated a Buy rating on the stock with a $100.00 price target.
Based on the recent corporate insider activity of 84 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of ROKU in relation to earlier this year.