Citizens reiterated its Market Outperform rating on Roku Inc. and preserved a $160 price target, reaffirming a bullish stance on the streaming platform's strategic position amid industry consolidation. The firm's target implies sizeable upside from the stock's then-current trading level of $95.20, and noted that the share price had declined 11.03% over the prior week, with the relative strength index sitting in oversold territory based on InvestingPro data.
Audience reach and engagement
Citizens underscored Roku's market footprint as a foundational strength. The firm cited Comscore data showing Roku reaches more than 50% of broadband households and accounted for 46% of U.S. streaming hours as of August. Those metrics underpin the firm's case that Roku is a major distribution and engagement node in the connected-TV ecosystem.
Growth catalysts identified
- Third-party demand-side platform (DSP) partnerships, with particular emphasis on integration with Amazon;
- Expansion of premium subscription offerings;
- Rising engagement on The Roku Channel;
- Broader adoption of the Roku Ads Manager advertising platform;
- Increasing efforts to monetize international audiences.
Citizens expects Roku to pursue these avenues while maintaining cost discipline. The firm projects the potential for the business to generate in excess of $1 billion in free cash flow over the next several years if execution and market conditions align with its assumptions.
Firm’s conclusion
Based on the audience scale, monetization opportunities and anticipated operating leverage, Citizens continues to recommend Roku shares at prevailing prices, characterizing the company as a "highly differentiated asset" within the streaming landscape.
Context from other sell-side analysts
Roku has been the subject of several recent analyst actions. Jefferies maintained a Buy rating and set a $135 price target, expressing optimism about upside risk to fourth-quarter and first-quarter platform revenue versus consensus. Bank of America raised its price target to $140 from $115, pointing to Roku's transformation and diversification of revenue streams and noting that this shift has supported a substantial stock recovery since 2022.
Citizens itself flagged 2026 as a potentially pivotal year, with expectations for sustained platform revenue growth and improved operating leverage. Evercore ISI upgraded its recommendation to Outperform and increased its price target to $145, citing company-specific catalysts due in 2026, including Amazon DSP integration and the rollout of new premium subscription channels. Wells Fargo reiterated an Overweight rating with a $116 price target, projecting robust platform growth into 2026 and suggesting Roku's adjusted EBITDA could reach roughly $650 million, above current consensus estimates.
These analyst updates collectively reflect a broadly positive stance among coverage firms, with multiple shops highlighting execution on advertising, subscription expansion and platform economics as the primary drivers of upside.
Note: This article reports analyst ratings and price targets and summarizes the views and projections communicated by those firms. It reflects the information cited above without endorsement or additional forecast.