Wall Street Analysts Rally Behind Roku’s Growth Trajectory

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A wave of bullish sentiment is sweeping across Wall Street regarding Roku, Inc., with multiple prominent investment firms significantly upgrading their outlook for the streaming platform in recent days. This surge in analyst confidence is rooted in robust quarterly performance and a strong belief in the company's capacity to capitalize on the expanding digital advertising market.

The foundation for this optimism lies in Roku's latest business results. For the third quarter of 2025, the company reported a 17% year-over-year increase in platform revenue. Its adjusted EBITDA grew by 19%, while the platform segment margin strengthened to a solid 51.5%. This margin expansion was primarily driven by heightened demand for advertising and subscription services on the platform.

Looking ahead, management has provided guidance for the current fourth quarter, anticipating revenue growth of approximately 12%. The platform margin is expected to improve further to 52%. According to estimates from Zacks Investment Research, earnings per share (EPS) could more than triple compared to the same period last year.

A Series of Upgraded Price Targets

This positive fundamental picture has triggered a series of analyst actions. On December 12, JP Morgan elevated its price target from $115 to $125, naming Roku a "top pick for 2026." Showing even greater optimism, Jefferies upgraded the stock to a "Buy" rating and raised its target from $100 to $135—a 35% increase. Other firms followed suit, with Wedbush issuing a $130 target and Guggenheim setting a $115 target.

The consensus among 28 covering analysts now points to an average price target of $113.65, with a high-end target of $145. This suggests substantial potential upside from the stock's recent trading levels.

Dominant Market Position Provides a Strategic Edge

Roku continues to solidify its leading position in the North American market. The company's operating system is now installed on televisions in over half of all U.S. broadband households. This extensive reach forms the cornerstone of its advertising strategy. Company leadership views the connected TV (CTV) advertising space as a future "commerce engine" and is actively pursuing partnerships, such as the one with Amazon DSP, to monetize this opportunity effectively.

While the overall narrative is positive, investors are advised to note ongoing insider selling activity. CEO Anthony Wood and other executives have disposed of shares worth several million dollars in recent weeks through pre-arranged trading plans.

The next critical test for Roku will be the release of its Q4 financial results and its outlook for 2026. This upcoming report will indicate whether the company can meet the heightened expectations now set by the analyst community.