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Roku Maintains Market Outperform Rating Amid New Features and Amazon Partnership

Citizens JMP reiterated its Market Outperform rating and $95 price target for Roku Inc.
Key Metrics

4.33

Heat Index
  • Impact Level
    Low
  • Scope Level
    National
  • Last Update
    2025-08-01
Key Impacts
Positive Impacts (5)
Digital Advertising / Ad-Tech Platforms
Roku Inc. (ROKU)
Amazon.com Inc. (AMZN)
Smart TV & Connected Device Manufacturers (e.g., Vizio, Samsung, LG)
Ad-Supported Streaming Services (Netflix w/ads, Disney+, Peacock, Paramount+)
Negative Impacts (1)
Cable & Satellite TV Providers (Comcast, Charter, Dish)
Total impacts: 7 | Positive: 5 | Negative: 1
Event Overview

Citizens JMP reiterated its Market Outperform rating and $95 price target for Roku Inc., citing new home screen features to enhance content discovery and a partnership with Amazon Ads. The collaboration aims to create the largest authenticated Connected TV reach in the U.S., targeting 80 million households by Q4 2025. Roku's revenue grew 17.3% over the past year, and analysts project continued advertising revenue growth of at least 20% annually. Despite a 3.57% stock drop to $77.604 on June 12, the consensus recommendation remains positive.

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Roku Stock Holds Market Outperform Rating Amid New Features and Amazon Partnership
2025-06-16 23:07

Citizens JMP has reiterated its Market Outperform rating and $95.00 price target on Roku Inc. (NASDAQ: ROKU), citing the streaming platform's testing of new home screen features designed to enhance content discovery and simplify navigation for users. The target aligns with the broader analyst range of $60-$130, as per InvestingPro data, which also highlights Roku's impressive 17.3% revenue growth over the last twelve months. The research firm emphasized Roku's control over directing viewers to content, particularly its ability to guide users toward The Roku Channel, its proprietary streaming service. This capability could increase monetizable inventory by driving more traffic to Roku's ad-supported channel.

In other developments, Roku announced a partnership with Amazon Ads to create the largest authenticated Connected TV (CTV) reach in the U.S., estimated at 80 million households. This integration, expected to be available to Amazon DSP advertisers by Q4 2025, will enable unified audience targeting across Roku and Fire TV platforms. The partnership leverages a custom identity resolution service, allowing Amazon DSP to recognize logged-in viewers deterministically across Roku OS devices. This aims to improve campaign management, frequency capping, and attribution of ad exposure to consumer purchases.

On June 12, Roku shares fell 3.57% to $77.604 in midday trading, down from a previous close of $80.48. The stock is currently 26.06% below its 52-week high of $104.96 and 60.57% above its 52-week low of $48.33. Trading volume was 1,113,805 shares, 26.9% of the average daily volume. Analysts' average one-year price target for Roku is $86.17, with a high estimate of $130.00 and a low of $60.00, implying an 11.04% upside from the current price. The consensus recommendation from 34 brokerage firms is an "Outperform" rating, with an average score of 2.3 on a scale of 1 (Strong Buy) to 5 (Sell).

Roku's strategic moves, including the Amazon partnership and new home screen features, are expected to bolster its position in the streaming market. Benchmark analysts maintain a Buy rating with a $130 target, projecting continued advertising revenue growth of at least 20% annually. Despite macroeconomic uncertainties, Roku's strong market presence and innovative initiatives position it for potential long-term growth.

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