Jefferies reiterates Hold rating on Roku stock, cites AI momentum

Published 15/08/2025, 10:56
Jefferies reiterates Hold rating on Roku stock, cites AI momentum

Investing.com - Jefferies maintained its Hold rating and $100.00 price target on Roku Inc. (NASDAQ:ROKU) on Friday, highlighting the company’s growing artificial intelligence initiatives. Currently trading at $87.51, the stock has shown strong momentum with a 47% gain over the past year. According to InvestingPro data, analysts’ targets range from $70 to $130, reflecting the market’s mixed outlook on this volatile stock.

The research firm noted that Roku is building momentum with its AI strategy, with all engineers already using co-pilot and similar tools to improve operational efficiency.

Jefferies pointed out that Roku’s operating system employs machine learning to drive user experience, which should enhance content recommendations and ultimately create stronger monetization opportunities through improved AI technology.

The recently launched Roku Ads Manager for small and medium-sized businesses likely leverages generative AI video technology to reduce production costs for quick commercial creation, according to the research note.

Jefferies also mentioned AI-generated content as a potential long-term opportunity for Roku’s original content strategy, suggesting it could significantly reduce content production costs if consumer interest materializes.

In other recent news, Roku Inc. reported impressive financial results for Q2 2025, with an earnings per share of $0.17, far exceeding the anticipated -$0.15. The company’s revenue also surpassed expectations, reaching $1.21 billion compared to the projected $1.07 billion. These results have fueled positive sentiment in the market. Roku also introduced Howdy, a new ad-free subscription streaming service priced at $2.99 per month, offering a wide range of content from partners like Lionsgate and Warner Bros. Discovery. This launch aims to attract more subscribers with its competitive pricing. Additionally, Citizens JMP reiterated its Market Outperform rating for Roku, maintaining a price target of $110.00, citing Roku’s extensive market reach and leadership in the U.S. TV operating system market. The firm also noted Roku’s expanding international presence as a positive factor. These developments highlight Roku’s strategic initiatives and financial performance.

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