Roku's Growth Surges: Analysts Raise Price Targets As Company Expands Ad Reach

Roku, Inc. ROKU shares are trading higher on Friday.

Yesterday, the company reported fourth-quarter losses of 24 cents per share, which beat the analyst consensus estimate of losses of 41 cents. Quarterly revenue came in at $1.2 billion, which beat the analyst consensus estimate of $1.14 billion.

Roku sees first-quarter revenue of $1.005 billion.

Here are the analysts’ takes on the quarterly performance:

• BofA Securities analyst Ruplu Bhattacharya reiterated the Buy rating on the stock, raising the price forecast to $120 from $90.
• Benchmark analyst Daniel L. Kurnos reiterated the Buy rating with the price forecast of $130.
• Wedbush analyst Alicia Reese reiterated the Outperform rating on the stock, increasing the price forecast to $125 from $100.
• JMP Securities analyst Matthew Condon reiterated the Market Outperform rating on the stock, raising the price forecast to $115 from $95.

BofA Securities: Per Bhattacharya, Roku’s broad reach, with over 90 million streaming households and a goal of 100 million, continues to attract advertisers.

Roku now expects to achieve positive operating margins by 2026, earlier than the analyst anticipated.

The analyst highlights that new ad products, like Roku Ads Manager and Roku Data Cloud/Roku Exchange, will draw more advertisers to the platform.

For 2025, Roku expects Platform revenue to grow 12% and EBITDA guidance of $350 million, which is higher than the $290 million Street estimate, the analyst noted. Free cash flow is expected to be higher than $350 million in F25 (vs. the analyst’s prior estimate of $300 million).

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Benchmark: According to Kurnos, initial concerns about Roku’s conservative outlook were unfounded, though the platform growth forecast of 12% is slightly below expectations.

The 16% Platform growth forecast for the start of the year, against a tough comparison, should build goodwill. While the $350 million EBITDA guidance exceeds consensus, it may still be below some investor expectations, the analyst writes.

Despite potential valuation pushback, Kurnos remains confident that Roku will break out this year, noting stronger momentum compared to other CTV platforms, making the stock a “top idea pick.”

Wedbush: Reese writes investors will reward Roku for its balanced approach to international expansion, platform growth, and ad capabilities, while maintaining expense discipline to drive free cash flow. The analyst raised forward EBITDA estimates, increasing confidence in Roku’s profitability roadmap.

JMP Securities: Per Condon, Roku has several ways to increase platform monetization, including third-party partnerships, the Home Screen, The Roku Channel, and Roku-billed subscriptions.

With these growth drivers and ongoing operational discipline, the analyst expects estimates to keep rising.

Price Action: ROKU shares are trading higher by 13.5% to $98.52 at last check Friday.

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