Morgan Stanley believes Roku has what it takes to outperform. The bank double upgraded the streaming stock to overweight from underweight. It also hiked its price target to $135 from $85, which implies upside of 24% from Monday’s close. Next year and beyond, analyst Thomas Yeh has higher conviction that Roku can continue to sustain its double-digit platform revenue growth. As catalysts he cited deepening platform partnerships, increases in streaming prices and premium subscription adoption, a healthy advertising backdrop and tailwinds in the connected TV industry, including growing political and sports migration. ROKU YTD mountain ROKU YTD chart “As linear TV budgets continue shifting towards streaming, growth in CTV advertising monetization remains a tailwind for Roku’s Platform revenues,” he wrote. “Roku’s Platform revenue growth has accelerated in 2H25, suggesting that its scaled user base, plus solid execution on deepening streaming partnerships and building new monetization opportunities (e.g. Premium Subscriptions, home screen banners) position the company as a continued beneficiary of industry tailwinds.” Yeh said that this revenue growth should improve operating leverages on the company’s future expenses, especially as Roku continues to invest in its sales and marketing and research and development. He added that sustained platform revenue growth should remain the key driver for valuation going forward, given Roku is still in early stage GAAP profitability. Shares of Roku, which have surged 47% this year, popped more than 4% following the rating change. Most analysts covering the stock are positive on Roku. LSEG data shows 22 of 32 who cover it have a buy or strong buy rating.
