Citizens reaffirms Roku stock rating, sees international growth potential

Investing.com - Citizens has reiterated its Market Outperform rating and $145.00 price target on Roku Inc. (NASDAQ:ROKU), representing significant upside from the current price of $98.58, citing the company’s expanding international presence and multiple growth catalysts. According to InvestingPro data, Roku’s stock has shown impressive momentum with a 69% surge over the past six months, though price movements remain notably volatile.

The firm notes that Roku has already established itself as the leading TV operating system provider in Mexico and Canada, while approaching a leadership position in Brazil. These market positions now enable the company to shift focus toward monetization in these regions.

Beyond international expansion, Citizens identifies several ongoing catalysts for Roku, including third-party DSP partnerships, bundled subscription offerings, Home Screen monetization, and continued engagement growth on The Roku Channel.

With the global connected TV advertising market projected to grow at a five-year compound annual growth rate of approximately 11% from 2025-2030 (according to GroupM), Citizens believes these factors support Roku’s ability to maintain high-teens growth over the next several years.

The firm expects this growth, combined with disciplined operating expense management, to create a path for upward revisions to financial estimates for Roku.

In other recent news, Roku Inc. has been the focus of multiple analyst updates and product launches. Citizens reiterated its Market Outperform rating for Roku, emphasizing its leading position in the U.S. television operating system market with a 45% connected TV market share. Needham maintained its Buy rating and named Roku as its top pick for 2025, while Benchmark also reiterated its Buy rating, noting a positive outlook for sustainable platform revenue growth. On the other hand, Piper Sandler kept a Neutral rating, highlighting growth potential among small and medium-sized businesses using Roku’s advertising platform.

Additionally, Roku announced the launch of Philips Roku TVs featuring Ambilight technology, a first for the U.S. market. This new feature allows the TV to project colors onto surrounding walls in real-time, enhancing the viewing experience. These developments reflect Roku’s ongoing efforts to expand its market presence and product offerings.

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