JMP maintains Roku stock $115 target despite OS dispute

Published 07/04/2025, 10:28
JMP maintains Roku stock $115 target despite OS dispute

On Monday, JMP Securities analysts maintained their positive stance on Roku Inc. (NASDAQ:ROKU), reasserting a Market Outperform rating and a price target of $115.00, representing significant upside from the current price of $55.28. According to InvestingPro data, the stock has experienced substantial volatility, dropping 21.5% in the past week alone. The firm addressed the ongoing debate regarding the leading TV operating system (OS) provider in the U.S., which has Roku and Samsung (KS:005930) presenting conflicting claims.

Roku’s sales of streaming media players have been declining, leading the company to increasingly depend on its Roku TV models and Roku-branded televisions for market presence. While the company maintains strong financial health with a current ratio of 2.62 and more cash than debt on its balance sheet, Samsung recently claimed to be the top TV OS provider in the United States, a statement that challenges Roku’s assertion of holding the leading position for six years straight.

JMP Securities suggests that Samsung’s data may be flawed, as it appears to count Roku TV models, such as Onn TVs powered by Roku OS, separately from Roku TVs. This distinction could be the source of discrepancy between Samsung and Roku’s data.

The debate over the leading TV OS provider comes at a time when Roku is shifting its focus to capitalize on its Roku TV models amidst falling sales in its standalone streaming devices. Roku’s strategy emphasizes the importance of integrated platforms as a key driver for distribution and market dominance.

Roku’s stock price target of $115.00 set by JMP Securities reflects confidence in the company’s market position and strategy, despite the current dispute over OS leadership. The firm’s rating suggests that they foresee Roku maintaining a strong presence in the competitive landscape of TV operating systems.

In other recent news, Roku Inc. has been the subject of various analyst assessments and corporate developments. Redburn-Atlantic upgraded Roku’s stock rating to Buy, setting a price target of $100, citing the company’s strong financial position and potential benefits from shifts in advertising towards Connected TV. Meanwhile, Citi analysts revised their outlook, lowering the price target to $81 from $103, due to concerns about a weakening macroeconomic environment and tariff risks affecting Roku’s device segment. JMP Securities maintained a Market Outperform rating with a $115 target, emphasizing Roku’s leadership in the streaming market and its robust retail presence.

Additionally, FBN Securities initiated coverage with an Outperform rating and a $93 price target, highlighting Roku’s expanding video advertising initiatives and potential revenue growth. In a corporate update, Roku announced that Board Director Ravi Ahuja will resign in June 2025, with no disagreements cited as the reason for his departure. This change will reduce the board size from nine to eight members. These recent developments reflect a mix of confidence and caution among analysts regarding Roku’s future prospects and strategic direction.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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