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Investing.com - KeyBanc upgraded Roku Inc. (NASDAQ:ROKU) from Sector Weight to Overweight on Thursday, setting a price target of $115.00. The streaming platform company, currently valued at $13 billion, has shown strong momentum with a 44% return over the past year, according to InvestingPro data.
The research firm cited multiple factors supporting the upgrade, including the combination of budget shifts and advertising innovation creating multiyear tailwinds for the streaming platform company. InvestingPro analysis indicates the stock’s RSI is in overbought territory, with price movements showing notable volatility.
KeyBanc believes Roku’s partnership strategy can sustain Platform growth and drive faster EBITDA growth than current consensus estimates, with their projections approximately 5% above Street expectations for 2026 and 12% higher for 2027.
The firm described Roku as benefiting from "a combination of secular drivers, monetization initiatives, and an expense ’self-help’ story" that positions the company favorably in the connected TV (CTV) market.
KeyBanc projects Roku will achieve approximately 43% EBITDA growth CAGR from 2024 to 2027, noting that despite potential stock price volatility, the company’s growth trajectory and "clean exposure to the CTV industry provide a compelling risk/reward." Based on InvestingPro’s Fair Value analysis, the stock appears fairly valued, with 10 additional exclusive ProTips available for subscribers.
In other recent news, Roku Inc. has seen several significant developments. Needham has increased its price target for Roku to $100, citing improved labor productivity and a 34% rise in revenue per employee from 2021 to 2024. This places Roku third in revenue-based labor efficiency among large-cap stocks covered by Needham. Meanwhile, Citizens JMP reiterated its Market Outperform rating with a $95 price target, highlighting Roku’s extensive market penetration and potential for enhanced platform monetization. Citi also raised its price target to $84, maintaining a Neutral rating, following Roku’s partnership with Amazon (NASDAQ:AMZN) to integrate its demand-side platform with Roku’s connected TV inventory. Benchmark and Guggenheim both reiterated their buy ratings, with price targets of $130 and $100, respectively, after the Amazon partnership announcement. This partnership aims to enhance Roku’s advertising capabilities and is expected to impact financial performance starting in 2026. Guggenheim noted that this collaboration could drive growth in Roku’s connected TV inventory and consumer data monetization.
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