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Roku Stock Soars on Upgrade: What's Next?
16 Dec, 2025
Summary
- Morgan Stanley upgraded Roku stock to overweight with a $135 price target.
- Analyst cites platform partnerships and streaming price increases as growth drivers.
- Roku shares have already surged 47% year-to-date.
Morgan Stanley has issued a strong endorsement for Roku, double upgrading its stock rating to overweight and establishing a new price target of $135. This represents a substantial increase from its previous $85 target, signaling a projected 24% upside from recent closing prices.
Analyst Thomas Yeh expressed high confidence in Roku's ability to sustain robust double-digit platform revenue growth in the coming years. Key catalysts identified include expanding platform partnerships, rising streaming service prices, and increased adoption of premium subscriptions. A favorable advertising environment and the broader shift towards connected TV are also expected to provide significant tailwinds.
The bank noted that as linear TV budgets increasingly migrate to streaming, Roku's platform revenue growth has accelerated. This momentum, coupled with strategic monetization efforts like premium subscriptions and home screen banners, positions the company to capitalize on industry trends. Improved operating leverage is anticipated as revenue growth outpaces future investments in sales, marketing, and R&D.
