Laura Martin, an analyst from Needham, maintained the Buy rating on Roku. The associated price target remains the same with $110.00.
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Laura Martin has given her Buy rating due to a combination of factors that highlight Roku’s strong financial performance and strategic initiatives. The company reported impressive third-quarter results with revenues reaching $1.2 billion, marking a 14% increase, and an adjusted EBITDA of $117 million, which was 19% higher year-over-year and surpassed expectations by 6%. These results position Roku as a top pick for 2025.
Furthermore, Martin notes the expanding operating income and EBITDA margins, with expectations for free cash flow to grow even faster than EBITDA in the coming fiscal year. Revenue growth is accelerating, particularly in the second half of 2025, excluding political and FrndlyTV contributions. Additionally, Roku’s strategic moves, such as repurchasing $50 million in shares, maintaining a capital expenditure light model, and enhancing its advertising platform with self-service options for small and medium businesses and new demand-side platform integrations, especially with Amazon, are expected to improve auction density and drive further growth.
In another report released today, Citizens JMP also reiterated a Buy rating on the stock with a $145.00 price target.