Roku Is Poised To Benefit From Higher Ad Spend, Says Bullish Analyst

Roku Inc ROKU is able to "increasingly" monetize its home screen as it has access to first-party data about who is watching, according to Needham.

The Roku Analyst: Analyst Laura Martin maintained a Buy rating and price target of $88.50.

The Roku Thesis: The CTV (connected television) segment is large and growing, Martin says. Ad revenues in the segment are expected to grow by 10% in 2025 to cross $32 billion, she added.

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"CTV is the primary beneficiary of $60B+ linear TV advertising moving to digital platforms over the next 5-7 years," she added.

Increased personalization with GenAI-led creative in CTV ads and real-time attribution could raise CPMs (cost per 1,000 views). ROKU takes a 25%- 50% share of every dollar spent on its platform," she further wrote.

More than 50% of US households now have Roku devices, which makes the company the largest streaming distribution platform for films and TV content, Martin said.

Price Action: At the time of publication on Monday, shares of Roku had risen by 0.45% to $60.49.

Read More:

• Roku’s Next Chapter: Analyst Sees Big Gains From Streaming And Ad Expansion

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