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Citi raised its price target on Roku (NASDAQ:ROKU) stock to $84 from $68 on Wednesday, while maintaining a Neutral rating following the streaming platform’s new partnership with Amazon (NASDAQ:AMZN). The stock, currently trading at $80.63, has delivered an impressive 53.49% return over the past year, according to InvestingPro data.
The partnership, announced Tuesday, will integrate Amazon’s demand-side platform (DSP) with Roku’s connected TV (CTV) inventory and provide Amazon’s DSP exclusive functionality to identify viewers across streaming channels.
Citi believes the move enhances Roku’s competitive positioning in the CTV space and provides incremental confidence in the company’s growth trajectory, according to its research note.
The firm raised its estimates to reflect the potential benefits of this new partnership, which aims to improve advertising capabilities across Roku’s platform.
Despite the higher price target, Citi maintained its Neutral rating, noting that the benefits of the partnership are "largely priced into the equity at prevailing levels."
In other recent news, Roku Inc. announced a significant partnership with Amazon, which has garnered attention from several analyst firms. The collaboration, which will integrate Amazon’s demand-side platform with Roku’s connected TV inventory, is expected to start impacting Roku’s financials in early 2026. Analysts from Benchmark, Guggenheim, Citizens JMP, Loop Capital, and BofA Securities have all reiterated or upgraded their ratings on Roku, citing the potential growth opportunities from this deal. Benchmark and Guggenheim both maintained their buy ratings, with price targets of $130 and $100, respectively, highlighting the strategic benefits of the partnership. Loop Capital upgraded Roku from Hold to Buy, raising its price target to $100, while BofA Securities increased its target from $85 to $100, maintaining a Buy rating. Citizens JMP expressed confidence in Roku’s potential for sustainable mid-teens platform revenue growth due to this and other monetization catalysts. The partnership is expected to enhance targeting precision and advertising efficiency by leveraging first-party data, according to Loop Capital. BofA noted that early tests of the advertising solution showed increased reach and reduced ad frequency, indicating improved performance for advertisers.
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