Bank of America Securities analyst Brent Navon CFA reiterated a Buy rating on Roku today and set a price target of $110.00.
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Brent Navon CFA has given his Buy rating due to a combination of factors including Roku’s strong second-quarter performance and promising future prospects. The company reported impressive revenue growth, particularly in its platform revenue, which exceeded expectations due to robust advertising gains and contributions from recent acquisitions. This performance led to an upward revision in Roku’s full-year revenue and adjusted EBITDA outlook, showcasing the company’s ability to capitalize on market opportunities.
Looking ahead, Brent Navon CFA believes Roku is well-positioned for continued growth through 2026. Key drivers include the potential benefits from a new deal with Amazon, political advertising during midterms, and improvements in the media and entertainment sector. Additionally, the company’s strategic initiatives, such as a $400 million share repurchase authorization, are expected to enhance shareholder value. These factors, combined with favorable industry trends like the rise in connected TV advertising and international streaming growth, underpin the Buy rating and the $110 price objective.