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Investing.com -- Piper Sandler upgraded Roku Inc to Overweight from Neutral, saying its core advertising and subscription platform is showing clearer signs of strength heading into 2026. The brokerage raised its price target to $135 from $88.
Roku’s third-quarter revenue rose 14% from a year earlier to about $1.21 billion, in line with Piper Sandler’s forecast.
Platform revenue, which includes advertising and content distribution, grew 17% to $1.06 billion, slightly above expectations. The devices business fell 5% to $145 million.
Piper said platform growth excluding political and acquisition-related contributions was about 19%, suggesting improving momentum in its core operations. Profitability also improved, with Roku reporting positive operating income under U.S. accounting standards ahead of its prior target for 2026.
Roku repurchased $50 million of stock in the quarter as part of a $400 million buyback plan. Piper said the move reflected the company’s growing maturity and financial discipline.
The brokerage highlighted stronger ad performance from programmatic partnerships, including new tie-ups with Amazon and The Trade Desk, and better engagement from small and mid-sized advertisers.
It also noted that subscription services benefited from new offerings such as the Frndly acquisition and the launch of “Howdy.”
Piper said it now expects Roku’s revenue to grow about 14.5% in 2026, potentially reaching the high teens by the end of the year, supported by rising ad demand and improving margins.