In a report released yesterday, James Heaney CFA from Jefferies upgraded Roku to a Buy, with a price target of $135.00.
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James Heaney CFA has given his Buy rating due to a combination of factors that suggest significant growth potential for Roku. Heaney anticipates that Roku’s platform revenue could exceed current market expectations, driven by increased demand-side platform (DSP) partnerships, political advertising tailwinds, and a revamped home screen offering. These elements contribute to an optimistic outlook for a 20% or more increase in platform revenue by 2026.
Additionally, Heaney highlights Roku’s disciplined approach to cost management, which supports the company’s ability to sustain double-digit revenue growth without significant increases in operating expenses. This cost efficiency, combined with a stable gross margin and the company’s strategic position in the monetization phase, suggests a potential 25% upside to the 2026 EBITDA estimates. Overall, Roku’s valuation and growth prospects make it an attractive investment opportunity, leading to the Buy rating.
According to TipRanks, Heaney CFA is a 5-star analyst with an average return of 24.6% and a 42.37% success rate. Heaney CFA covers the Communication Services sector, focusing on stocks such as AppLovin, Netflix, and Walt Disney.
In another report released on December 4, Guggenheim also maintained a Buy rating on the stock with a $115.00 price target.