Analyst Brent Navon CFA of Bank of America Securities reiterated a Buy rating on Roku, boosting the price target to $115.00.
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Brent Navon CFA’s rating is based on Roku’s strong financial performance and promising growth prospects. The company reported solid third-quarter results, with revenue surpassing expectations due to robust platform revenue growth driven by video advertising and streaming services distribution. Roku’s ability to achieve operating income profitability and expand EBITDA margins further supports a positive outlook.
Looking ahead, several factors contribute to Roku’s favorable position into 2026. These include the ramp-up of a new Amazon DSP deal, political contributions, growth in ad manager/self-serve, and initiatives to expand the subscription business. Additionally, Roku is expected to benefit from industry trends such as growth in connected TV advertising and streaming video, alongside improving fill rates in its advertising business. These elements, coupled with the company’s strategic actions, underpin the Buy rating and the raised price objective of $115.
Navon CFA covers the Communication Services sector, focusing on stocks such as Roku, TKO Group Holdings, and Liberty Media Liberty Formula One. According to TipRanks, Navon CFA has an average return of 33.8% and a 90.00% success rate on recommended stocks.
In another report released today, Needham also maintained a Buy rating on the stock with a $110.00 price target.