Morgan Stanley's Positive Outlook on Roku and Outfront Media Driven by Optimism in Advertising Expenditure
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 16 2025
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Source: SeekingAlpha
Roku and Outfront Media Ratings Upgrade: Roku and Outfront Media received an "overweight" rating from Morgan Stanley, improving from "underweight," leading to a nearly 4% increase in premarket trading for both companies.
Positive Outlook for U.S. Advertising Market: Analysts expect a strong year for U.S. advertising spending, particularly in connected TV (CTV), driven by the migration of sports and political advertising, which may enhance revenue growth.
Roku's Growth Potential: Morgan Stanley anticipates significant growth for Roku's platform revenue by 2026, supported by an expanding user base, enhanced streaming partnerships, and new monetization strategies.
Outfront Media's Share Upside: The firm projects that Outfront Media's share price will benefit from cyclical events, improved revenue from transit, and easing revenue comparisons, with a price target increase from $20 to $28.
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Analyst Views on ROKU
Wall Street analysts forecast ROKU stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ROKU is 123.10 USD with a low forecast of 100.00 USD and a high forecast of 145.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
23 Analyst Rating
19 Buy
4 Hold
0 Sell
Strong Buy
Current: 100.840
Low
100.00
Averages
123.10
High
145.00
Current: 100.840
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.
Roku to Release Q4 2025 Financial Results on Feb. 12, 2026
- Earnings Release Schedule: Roku will announce its Q4 2025 financial results after market close on February 12, 2026, which is expected to significantly impact investor sentiment.
- Live Webcast Details: The company will host a live earnings call at 2 PM Pacific Time on the same day, allowing investors to listen in via the Roku investor relations website, enhancing transparency.
- Archived Financial Information: Following the earnings call, Roku will provide an archived version of the conference on its investor relations website, ensuring all investors have access to critical information.
- Company Overview: Roku, a pioneer in streaming TV, offers a range of products and services, including Roku TV and The Roku Channel, aimed at connecting users with their favorite content and facilitating advertiser engagement with consumers.
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Dolby Laboratories Exceeds Q1 Earnings Expectations
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- Cash Flow and Buybacks: The company generated approximately $55 million in operating cash flow, repurchased $70 million in stock, and declared a $0.36 dividend, up 9% year-over-year, indicating a proactive approach to capital management and shareholder returns.
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- Tech Partnerships and Innovation: Dolby's partnership with Qualcomm integrates its Atmos and Vision technologies into Qualcomm's automotive platform, expanding collaborations with over 35 OEMs, which is expected to enhance its market share in automotive entertainment and streaming.
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