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Investing.com - Citizens JMP reiterated its Market Outperform rating and $110.00 price target on Roku Inc. (NASDAQ:ROKU) on Friday. The stock, currently trading at $94.16, has shown strong momentum with a 70% return over the past year, according to InvestingPro data.
The firm highlighted Roku’s significant market reach, noting the platform extends to more than 50% of U.S. broadband households while maintaining leadership in the U.S. TV operating system market and expanding its international presence.
Citizens JMP cited multiple revenue drivers supporting Roku’s long-term growth prospects, including third-party DSP partnerships, Roku Ads Manager, Home Screen advertising, The Roku Channel, and Roku-billed subscriptions.
The company has accelerated its profitability timeline, now expecting to reach operating income profitability in the fourth quarter of 2025, earlier than its previous 2026 target, while maintaining steady margin expansion through disciplined cost management.
Citizens JMP views Roku’s risk/reward profile as favorable at current levels, pointing to multiple top-line catalysts and improving profitability outlook.
In other recent news, Roku Inc. reported impressive financial results for the second quarter of 2025. The company achieved an earnings per share (EPS) of $0.17, surpassing the anticipated loss of $0.15 per share. Additionally, Roku’s revenue reached $1.21 billion, exceeding expectations of $1.07 billion. These results have generated positive sentiment among investors. Analysts had projected lower earnings, making the actual outcomes a notable development for the company. The earnings announcement has been met with favorable reactions, and the revenue figures highlight Roku’s strong performance in the market. These recent developments underscore the company’s ability to exceed market expectations.
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