Roku price target raised to $100 from $85 at BofA on Amazon deal

BofA Securities raised its price target on Roku stock (NASDAQ:ROKU) to $100 from $85 on Monday, while maintaining a Buy rating following the company’s new partnership with Amazon (NASDAQ:AMZN). The stock has shown remarkable momentum, delivering a 52% return over the past year, though InvestingPro data indicates significant price volatility.

The streaming platform announced on June 16 that it had formed an exclusive partnership with Amazon that deepens the relationship between the two companies. Under the integration, advertisers will gain access to the largest authenticated connected TV footprint in the United States exclusively through Amazon’s demand side platform. According to InvestingPro analysis, Roku maintains strong financial health with a current ratio of 2.86 and more cash than debt on its balance sheet.

BofA noted that the expansion of this relationship is intended to improve performance, planning and measurement for all advertisers. Early tests suggest this new solution reached 40% more unique viewers with the same budget and reduced how often the same person saw an ad by nearly 30%.

The new advertising solution will become available to advertisers in the fourth quarter of 2025, according to BofA. The firm expects the partnership to have a more pronounced benefit in 2026.

Roku has been expanding its advertising capabilities as it seeks to monetize its large user base beyond hardware sales. The company’s platform segment, which includes advertising and content distribution, has become an increasingly important revenue driver for the streaming device maker.

In other recent news, Roku Inc. has announced a significant partnership with Amazon, aiming to create the largest authenticated Connected TV (CTV) reach in the U.S. This collaboration is expected to be available to all Amazon DSP advertisers by the fourth quarter of 2025, potentially reaching 80% of U.S. CTV households. In another development, Citizens JMP has reiterated its Market Outperform rating for Roku, maintaining a price target of $95. The analysts highlighted Roku’s strong position in the streaming market and its potential for platform monetization through various catalysts. Furthermore, Roku shareholders have approved executive compensation, with 78.6% voting in favor of the proposal. The appointment of Deloitte & Touche LLP as the independent accounting firm for the fiscal year 2025 was also ratified by 99.1% of the votes. These developments reflect ongoing confidence in Roku’s management and strategic initiatives.

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