Roku’s Strong Q1 2025 Performance and Strategic Advantages Lead to Buy Rating

In a report released today, Laura Martin from Needham maintained a Buy rating on Roku (ROKU – Research Report), with a price target of $88.50.

Laura Martin’s rating is based on Roku’s impressive first-quarter results for 2025, which exceeded expectations with revenues of $1.02 billion and an adjusted EBITDA of $56 million. These figures represent significant year-over-year growth, reinforcing Roku’s strong financial performance.
Additionally, Martin highlights several strategic advantages that contribute to her positive outlook. These include Roku’s ability to maintain its guidance, potential revenue growth from selling connected TV data to third parties, and the strategic acquisition of Frndly TV. Furthermore, the Roku Channel’s position as the second most viewed platform, coupled with accelerated revenue growth through integrations like The Trade Desk, and innovative advertising strategies, all suggest a promising future for Roku. The company’s minimal tariff risk further supports the Buy rating.

Martin covers the Communication Services sector, focusing on stocks such as Roku, Alphabet Class A, and Magnite. According to TipRanks, Martin has an average return of -3.1% and a 38.37% success rate on recommended stocks.

In another report released today, Pivotal Research also reiterated a Buy rating on the stock with a $100.00 price target.