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Investing.com - Benchmark maintained its Buy rating and $130.00 price target on Roku Inc. (NASDAQ:ROKU), representing ~34% upside from the current price of $96.73, following meetings with the company’s management team at Benchmark’s 12th annual TMT conference in New York. According to InvestingPro data, analyst targets for the stock range from $70 to $145.
The research firm noted an "incrementally more positive" tone in conversations with Roku executives, with management expressing confidence that platform revenue growth should remain sustainable for the next several years. This optimism is supported by the company’s solid 17.3% revenue growth over the last twelve months, with InvestingPro analysis showing a strong financial health score of 2.74 (GOOD).
Benchmark highlighted potential growth drivers including organic initiatives and new partnership agreements that could provide substantial optionality for the streaming platform provider.
The firm acknowledged valuation concerns, noting that both sell-side and buy-side estimates for 2026 EBITDA have become more aggressive, with buy-side projections reaching levels similar to late 2023.
Benchmark suggested Roku needs to "take control of the narrative" through medium-term targets or a clearer growth framework, while adding that continued execution, additional business wins, and improving free cash flow could transform the company into a "multi-year compounder."
In other recent news, Roku Inc. has seen a series of notable developments. Citizens JMP increased its price target for Roku from $110 to $145, maintaining a Market Outperform rating, citing Roku’s leading position in the U.S. TV operating system market. The firm noted that Roku now reaches 50% of broadband households and captures 21.4% of total U.S. TV viewing time. In a related update, Nielsen data revealed that Roku-powered devices accounted for 21.4% of all U.S. TV viewing time in July, surpassing broadcast television for the third consecutive month. Piper Sandler maintained a Neutral rating with an $88 price target, observing steady growth in Roku’s advertising platform among small and medium-sized businesses. Jefferies reiterated a Hold rating with a $100 price target, emphasizing Roku’s growing momentum in artificial intelligence initiatives. The firm highlighted that all Roku engineers are utilizing AI tools to enhance operational efficiency. These developments reflect Roku’s ongoing influence in the streaming and advertising sectors.
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