JMP Securities maintains Roku stock with $95 target

On Monday, JMP Securities reaffirmed its Market Outperform rating on Roku Inc. (NASDAQ:ROKU) with a steady price target of $95.00. According to InvestingPro data, Roku’s stock has shown significant momentum with a 56% gain over the past six months, though price movements remain volatile. The firm’s analysis indicates that although Roku’s share of placements dipped slightly across all platforms in February, this is seen as a normal fluctuation rather than a sign of any fundamental shifts. Roku TV continues to hold its position as the second-best selling product among the top 50 best-selling TVs on Amazon (NASDAQ:AMZN).

The firm’s analyst emphasized Roku’s sustained status as the leading streaming platform in the United States. Despite minor month-to-month variations, the firm believes Roku’s market position remains solid. InvestingPro analysis reveals that while Roku maintains strong revenue growth of nearly 16% and holds more cash than debt, analysts don’t expect profitability this year. Roku’s multiple avenues for monetization, including its Home Screen and partnerships for third-party demand, contribute to this optimistic outlook.

Roku’s strategy involves leveraging its Home Screen to drive user engagement and revenue. With a market capitalization of $12 billion and an impressive gross profit margin of 45%, the company’s partnerships play a critical role in its business model, allowing it to tap into third-party demand and diversify its income streams. This approach is a cornerstone of Roku’s success and is expected to continue supporting its growth. Discover more insights about Roku’s financial health and growth potential with InvestingPro, which offers 8 additional key tips and comprehensive analysis.

The stability of Roku’s position in the market is underscored by its performance on major retail platforms such as Amazon. The consistent popularity of Roku TVs, evidenced by their sales rankings, supports the analyst’s view that Roku’s market presence is not only strong but also resilient against normal market variances.

In conclusion, JMP Securities’ outlook for Roku Inc. remains positive, with no adjustments to the $95.00 price target. The firm’s findings suggest that Roku’s slight placement decline in February is not indicative of any structural concerns but rather a typical market ebb and flow. Roku’s strategic monetization methods and strong market presence underpin JMP Securities’ continued confidence in the company’s performance.

In other recent news, Roku Inc. continues to make headlines with significant developments. The streaming giant recently reported surpassing 90 million streaming households, a testament to its dominance in North American television consumption. This milestone follows a decade of the Roku TV program and 15 years since the launch of Roku’s first streaming device.

Benchmark analysts maintained a Buy rating on Roku, highlighting the potential for substantial revenue growth from third-party demand-side platform integrations and home screen monetization efforts. In contrast, Wolfe Research reiterated an Outperform rating, focusing on the potential of Roku’s Platform segment. The firm’s analysis suggests this segment could achieve a mid-teens percentage sales Compound Annual Growth Rate (CAGR) through the fiscal year 2027.

Roku also announced the upcoming departure of Gidon Katz, Senior Vice President of Platform Products & User Experience, effective April 2025. Additionally, the company unveiled Roku Data Cloud, a data solution designed to enhance TV streaming investments for advertisers and publishers.

Despite these positive developments, analysts from InvestingPro do not anticipate profitability this year for Roku. Loop Capital recently increased Roku’s price target to $80, maintaining a Hold rating. These are recent developments in Roku’s trajectory, shedding light on the company’s strategic initiatives and their potential impact on future growth.

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