Jefferies reaffirmed a Buy rating on Roku Inc. (NASDAQ:ROKU) and put a $135.00 price target on the shares, a level that represents about a 26% increase from the stock's current trading price of $107. According to InvestingPro data cited alongside the call, Roku's stock has risen by more than 33% over the past year despite a period of recent volatility.
The research house said it is constructive on Roku as the company approaches its fourth-quarter earnings, signalling that both Q4 and Q1 platform revenue could come in above consensus estimates. Roku is scheduled to report results on February 12, and InvestingPro data show that three analysts have recently raised their earnings estimates for the upcoming period.
Jefferies discussed Roku's early 2026 revenue posture, noting that if the company provides an initial platform revenue guide for 2026 it could imply mid-teens percentage year-over-year growth. The Street's current consensus stands at 15% growth. The firm added that conservative initial guidance would not rule out the possibility of 2026 growth ultimately reaching 20% and described Roku as a "clean revision story with structurally improving growth/margin profile."
Looking beyond guidance, Jefferies identified several specific areas that could drive upside in 2026: integration of Amazon DSP, new home screen initiatives, launches of premium subscription offerings, and an expanded political advertising market. The firm presented these items as concrete execution paths that could support higher platform revenue and margin expansion.
Roku has also attracted a string of positive analyst actions in recent weeks. BofA Securities raised its price target to $140 and kept a Buy rating, citing what it called the company's successful transformation and diversification of revenue streams. Citizens increased its target to $160 and pointed to 2026 as a potentially pivotal year given the expected catalysts.
Evercore ISI moved Roku from In Line to Outperform and lifted its target to $145, highlighting company-specific catalysts such as Amazon DSP integration and the rollout of new premium subscription channels. Wells Fargo retained an Overweight rating with a $116 price target, projecting continued platform growth and a strong 2026 that could see adjusted EBITDA near $650 million. Separately, Citizens reiterated a Market Outperform rating with a $145 target, citing Roku's leadership position in streaming and gains in Roku TV market share.
Collectively, these analyst updates reflect a rising level of confidence in Roku's revenue diversification and the potential for upward revisions to near-term and 2026 forecasts, according to the firms that issued the notes.
Summary of the situation
- Jefferies remains bullish on Roku with a $135 target and highlights possible platform revenue beats for Q4 and Q1 ahead of the February 12 earnings release.
- Multiple brokers have recently increased targets or ratings, citing transformational progress, new revenue channels, integration opportunities, and market-share gains for Roku TV.
- Jefferies identified several 2026 upside catalysts, while noting street expectations for 15% platform revenue growth and leaving open the possibility of eventual 20% growth.