In a report released today, Thomas Yeh from Morgan Stanley maintained a Buy rating on Roku, with a price target of $135.00.
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Thomas Yeh has given his Buy rating due to a combination of factors that point to durable, above-consensus growth in Roku’s Platform business. He highlights that the company exited the year with faster Platform revenue expansion than expected, supported by a growing user base, stronger monetization initiatives, and early signs that media and entertainment ad budgets are stabilizing, all of which reinforce confidence in double‑digit growth into 2027 and 2028.
Yeh also emphasizes Roku’s improving financial profile, noting management’s target of exceeding $1 billion in free cash flow by 2028 or sooner, underpinned by revenue durability and operating expense discipline. In his view, Roku’s advantaged smart TV positioning, new product levers such as a redesigned home screen, and multiple tailwinds including political advertising and data licensing justify a premium valuation, supporting his $135 price target and Buy recommendation.
In another report released today, Piper Sandler also maintained a Buy rating on the stock with a $140.00 price target.