Update shared on 05 Dec 2025
Fair value Increased 0.19%Analysts have nudged their price target on Roku slightly higher to $110.88 from $110.67, citing stronger platform revenue growth, improving EBITDA trends, and rising confidence that recent solid quarterly results and monetization initiatives can sustain momentum into 2026.
Analyst Commentary
Recent research updates on Roku highlight a meaningful shift toward a more constructive stance on the stock, with multiple bullish analysts raising price targets in response to steady execution and clearer visibility into the 2026 outlook.
Bullish Takeaways
- Bullish analysts point to Roku delivering another solid quarter, with results slightly ahead of expectations and a Q4 outlook that supports a durable 2026 growth narrative.
- Several firms emphasize improving platform fundamentals, including better monetization across advertising and services, which they see as key to supporting higher long term revenue growth and valuation multiples.
- Upgraded ratings and higher targets, including calls for the stock to outperform, are being justified by rising confidence in profitability improvement, with EBITDA trends viewed as inflecting positively and supporting stronger shareholder returns.
- Some forecasts for robust future free cash flow and sustained platform investment underpin the view that Roku can compound value over multiple years, reinforcing the case for premium valuation versus prior cycles.
Bearish Takeaways
- More cautious analysts maintain neutral or in line ratings even as they lift price targets, signaling that much of the near term improvement may already be reflected in the current share price.
- There is concern that recent upside versus expectations has been modest, with at least one major firm noting that Q3 delivered less surprise than hoped, leaving limited room for execution missteps.
- Some research highlights that platform gains and EBITDA improvement, while positive, are still early in their trajectory, implying that Roku must continue to deliver against guidance to justify higher valuation levels.
- Cautious voices also flag that stronger 2026 scenarios depend on sustained monetization momentum and disciplined investment. Any slowdown in ad demand or misallocation of spend could pressure both growth assumptions and target prices.
What's in the News
- Paramount appoints Roku ad sales leader Jay Askinasi as its first chief revenue officer, putting a key Roku executive in charge of monetization strategy at a major streaming rival (ADWEEK).
- Roku and DoubleVerify report major progress blocking CTV ad fraud, using Roku Advertising Watermark and DV Fraud Lab to thwart schemes like SmokeScreen and CycloneBot while enhancing measurement on Roku inventory (company client announcement).
- Roku expands its FreeWheel partnership, making FreeWheel Streaming Hub a key activation point for Roku Advertising and giving buyers and publishers more direct, transparent access to Roku CTV supply (company client announcement).
- Roku launches Philips Roku TVs with Ambilight in the U.S., pairing Roku TV OS with Philips ambient backlighting to deepen immersion and strengthen Roku's premium smart TV lineup (product announcement).
- Roku introduces the Aurzen Roku TV Smart Projector D1R Cube, extending the Roku OS experience to portable big-screen projection for indoor and outdoor viewing (product announcement).
Valuation Changes
- Fair Value Estimate has risen slightly, moving from $110.67 to $110.88 per share, reflecting a modest uplift in the long term outlook.
- Discount Rate has edged lower, decreasing from 9.11 percent to about 9.07 percent, implying a marginally reduced perceived risk profile.
- Revenue Growth assumption has increased slightly, from roughly 11.77 percent to about 11.84 percent annually, signaling a modestly stronger top line trajectory.
- Net Profit Margin expectation has eased fractionally, from about 5.91 percent to roughly 5.90 percent, indicating virtually unchanged profitability assumptions.
- Future P/E multiple has ticked up marginally, shifting from 58.65x to approximately 58.68x, suggesting a nearly stable forward valuation framework.
Disclaimer
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