Roku Inc (NASDAQ:ROKU) has been upgraded to a ‘Buy’ rating by Jefferies, which raised its price target to $135 from $100, with the firm pointing to potential upside in the company’s platform revenue as the primary driver behind the upgrade.
The new price target implies upside of about 28% from Roku’s share price at the analysts’ time of writing.
“We see upside to Street’s 15% year-over-year 2026 Platform revenue, with a 20%+ upside case possible given DSP ramps, political tailwinds, subscription momentum, and home screen revamp optionality,” the analysts wrote.
The analysts highlighted that Roku’s management has maintained a strong focus on cost discipline, which they said positions the company for multi-year revenue growth without needing to significantly expand operating expenses.
Jefferies’ base case now projects 16% year-over-year growth in platform revenue for 2026, slightly above the Street consensus of 15%. However, the firm also outlined an upside scenario where platform revenue could grow more than 20% in 2026, driven by a combination of subscription growth, advertising demand, and product improvements.
“While we’re not bringing our base case there today, Roku screens as one of the cleanest topline revisions stories in internet, with both near-term and long-term revenue upside,” they wrote.
On profitability, Jefferies expects 2026 EBITDA could see roughly 25% upside compared with Street estimates. “We’re confident 2026 Platform GMs remain stable in the 51-52% range,” they wrote. “Our sense is Roku’s ~$2 billion opex base is sufficient to support double-digit revenue growth for multiple years, as Roku exists in the monetization phase of its life cycle.”
The firm also highlighted Roku’s unique position among internet peers. “Roku has a unique combo of meaningful upside to Street on revenues, management commitment to cost discipline, at a palatable valuation,” they wrote. “Its platform remains undermonetized with plenty of product levers to pull, while not needing to scale its opex base.”
Separately, Wedbush has added Roku to its Best Ideas List and maintained an ‘Outperform’ rating with a $130 price target, up from $115.
The firm cited accelerating monetization, improving profitability, and a favorable tax position as key drivers.
“We came away from our recent meeting with management incrementally more positive about Roku’s growth opportunities, the leverage in its model, and its commitment to returning cash to shareholders,” they wrote.
They also highlighted the company’s strong advertising potential, noting that Roku’s deep integration with Amazon and other demand-side platforms, along with innovations such as shoppable ads, position the company for accelerating revenue momentum in 2026 and 2027.
Wedbush added that Roku’s right-sized operating expense base, double-digit platform revenue growth, and substantial net operating losses provide a clear path to operating leverage and increased share buybacks.