Bank of America Upgrades Roku, Sees Revenue Growth Potential
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 08 2026
0mins
Should l Buy ROKU?
Source: Coinmarketcap
Roku Inc's stock fell 4.45% and hit a 20-day low amid a broader market decline, with the Nasdaq-100 down 1.65% and the S&P 500 down 0.99%.
Bank of America upgraded Roku to a buy rating and raised its price target from $115 to $140, reflecting confidence in the company's revenue diversification strategy. Analyst Brent Navon noted that Roku's shares have nearly tripled from their 2022 lows, driven by initiatives like self-serve advertising and the Frndly acquisition, which could sustain revenue growth and improve profitability.
This upgrade comes at a crucial time as Roku seeks to enhance its market position. The analyst's positive outlook suggests that if Roku can maintain its profitability improvements, it may attract a broader investor base and potentially be included in major indices.
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Analyst Views on ROKU
Wall Street analysts forecast ROKU stock price to rise
23 Analyst Rating
19 Buy
4 Hold
0 Sell
Strong Buy
Current: 94.900
Low
100.00
Averages
123.10
High
145.00
Current: 94.900
Low
100.00
Averages
123.10
High
145.00
About ROKU
Roku, Inc. operates a television (TV) streaming platform. The Company connects viewers to the streaming content they love, enables content publishers to build and monetize large audiences, and provides advertisers with capabilities to engage consumers. The Company’s segments include platform and devices. The platform segment is engaged in the sale of digital advertising (including direct and programmatic video advertising, media and entertainment promotional spending, and related services) and streaming services distribution (including subscription and transaction revenue shares, the sale of premium subscriptions, and the sale of branded app buttons on remote controls). The devices segment is engaged in the sale of streaming players, Roku-branded TVs, smart home products and services, audio products, and related accessories. The Company sells the majority of its devices in the United States through retailers and distributors as well as through the Company’s website.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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