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Loop Capital upgraded Roku Inc. (NASDAQ:ROKU) from Hold to Buy on Tuesday, raising its price target to $100.00 from $80.00 following the announcement of an advertising partnership with Amazon (NASDAQ:AMZN). The stock, which has delivered a remarkable 52% return over the past year according to InvestingPro data, currently trades near $82 per share.
The upgrade comes after Roku and Amazon revealed a collaboration that will integrate their connected TV user bases, estimated to reach approximately 80 million households through Amazon’s demand-side platform.
Under the partnership, advertisers will gain exclusive access to first-party data from the Roku platform, which Loop Capital believes will enhance targeting precision, measurement capabilities, and overall advertising efficiency.
Loop Capital expects this development to strengthen Roku’s position as the leading TV operating system in the United States, with Roku contributing its user base while Amazon brings what the firm describes as its "unmatched shopping feedback loop."
The financial benefits of this partnership are expected to begin impacting Roku’s results starting in 2026, prompting Loop Capital to raise both its estimates for that year and its price target for the stock.
In other recent news, Roku Inc. has announced a significant partnership with Amazon, which will provide advertisers access to the largest authenticated Connected TV footprint in the U.S. through Amazon’s demand-side platform. This integration, expected to be available by the fourth quarter of 2025, aims to reach approximately 80 million U.S. CTV households. Early tests indicate that this new advertising solution could increase unique viewership by 40% while reducing ad frequency by nearly 30%. In light of this development, BofA Securities has raised its price target for Roku to $100 from $85, maintaining a Buy rating. Meanwhile, Citizens JMP has reiterated its Market Outperform rating and a $95 price target, highlighting Roku’s testing of new home screen features that enhance content discovery. Additionally, Roku shareholders have approved executive compensation and the appointment of Deloitte & Touche LLP as the company’s accounting firm for 2025. These developments underscore Roku’s strategic efforts to expand its advertising capabilities and reinforce its market position.
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