Roku (ROKU – Research Report), the Communication Services sector company, was revisited by a Wall Street analyst today. Analyst Laura Martin from Needham maintained a Buy rating on the stock and has a $120.00 price target.
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Laura Martin has given her Buy rating due to a combination of factors, primarily driven by Roku’s recent and projected financial performance. Roku reported a significant increase in revenue and adjusted EBITDA for the fourth quarter of 2024, surpassing initial estimates, and provided promising guidance for the first quarter and full year of 2025, which has led to an upward revision of estimates and price targets.
Key aspects contributing to this positive outlook include a substantial increase in Roku’s installed base, strong political advertising revenue, and a notable rise in average daily viewing hours per household. Additionally, the company demonstrated strong margin expansion, robust subscription revenue growth, and effective cost controls. Furthermore, the expansion of retail media ad units and self-service capabilities is expected to increase Roku’s total addressable market, supported by deep integrations with demand-side platforms that enhance advertising fill ratios.
In another report released today, Pivotal Research also upgraded the stock to a Buy with a $125.00 price target.
Based on the recent corporate insider activity of 86 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.