Roku (ROKU) caught a tailwind Thursday after KeyBanc analyst Justin Patterson upgraded the stock to Overweight, citing a “significant shift” in advertising budgets away from linear TV and into connected platforms like Roku.
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Shares climbed more than 2% to $90.36 in early trading. Patterson set a price target of $115, implying nearly 30% upside from Wednesday’s close. Roku stock has already surged 39% since mid-April, when tariffs triggered a broader market correction but streaming names started to rebound.
Linear TV Bleeds, CTV Banks
Patterson called out Roku’s strategic partnerships with The Trade Desk (TTD) and Amazon (AMZN) as the catalysts to watch. Roku’s monetization model is evolving, and these deals will help drive higher fill rates and ad yield over time.
“Ad dollars are shifting from linear TV to connected TV, and Roku is better positioned now with third-party monetization partners,” Patterson wrote. He added that Roku could onboard Google (GOOGL) or Yahoo next.
Discipline Meets Opportunity
The analyst also praised Roku’s financial discipline. After years of bloated costs, the company has tightened its belt, showing “more discipline on headcount and incremental investments.” That, combined with improved ad performance, has Patterson forecasting GAAP profitability by the end of 2026.
Roku still trails the broader market over a three-year period, but the story is shifting. A rebound in ad dollars, operational focus, and a growing CTV ecosystem all signal that Roku may finally be poised to reward long-term holders.
Is ROKU a Good Stock to Buy?
According to TipRanks, Roku (ROKU) holds a Moderate Buy consensus rating based on 20 analyst reviews in the past three months. The breakdown includes 14 Buys, five Holds, and one Sell.
The average 12-month ROKU price target is $92.79, representing a 4.95% upside from the current share price.

