Update shared on 21 Nov 2025
Fair value Increased 0.57%Roku's analyst price target has increased by roughly $0.62 to $110.67. Analysts cite improved quarterly results, solid platform fundamentals, and an ongoing opportunity to enhance monetization as key drivers of their more favorable outlook.
Analyst Commentary
Recent analyst reports on Roku reflect a mix of optimism about the company's growth trajectory and some caution about future execution. Below, we outline the main bullish and bearish takeaways gathered from the latest research notes and price target adjustments.
Bullish Takeaways- Bullish analysts are encouraged by Roku’s continued improvement in quarterly results, especially as revenue and key financial metrics have either met or exceeded expectations in recent quarters.
- There is growing confidence in Roku’s ability to broaden platform monetization. Recent investments in advertising and subscription offerings are viewed as catalysts for future revenue growth.
- Analysts highlight the company’s execution on growth initiatives and believe the momentum in profitability and shareholder returns can be sustained into 2026.
- Channel checks anticipate further upside from integration with third-party demand-side platforms and new bundled service offerings. Both developments support a positive long-term outlook for platform revenue and EBITDA.
- Bearish analysts remain neutral or cautious on valuation. They note that while Roku is executing well, the stock’s rally may already reflect much of the anticipated platform growth.
- Some caution is expressed regarding competition and the sustainability of ad platform momentum. Roku needs to consistently deliver on new initiatives to justify higher multiples.
- There are concerns that near-term earnings results, while solid, show less upside than some bullish scenarios suggest. This indicates that growth expectations may be ambitious without stronger execution in future quarters.
What's in the News
- Paramount has appointed Jay Askinasi, formerly Roku's ad sales leader, as its new chief revenue officer. He will shape the media company's monetization strategy (ADWEEK).
- DoubleVerify and Roku announced major progress in their ongoing collaboration to combat CTV ad fraud. This includes effective use of Roku's Advertising Watermark and successful takedowns of large-scale fraud schemes such as CycloneBot and SmokeScreen.
- Roku and FreeWheel expanded their partnership, making it easier for advertisers and publishers to access Roku’s premium connected TV inventory through the FreeWheel Streaming Hub and Marketplace.
- Roku launched Philips Roku TV models with exclusive Ambilight technology in the U.S. The new models offer immersive LED lighting and several smart streaming features.
- The company completed a share buyback of 567,582 shares for $50 million, representing 0.39% of outstanding shares, under its announced buyback program.
Valuation Changes
- Fair Value Estimate has increased slightly, from $110.04 to $110.67 per share.
- Discount Rate has risen modestly, moving from 8.91% to 9.11%.
- Revenue Growth Estimate is nearly unchanged, climbing fractionally from 11.76% to 11.77%.
- Net Profit Margin saw a negligible decrease, shifting from 5.91% to 5.91%.
- Future P/E Ratio forecast has declined marginally, from 58.76x to 58.65x.
Disclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.