By Angela Palumbo
Roku has even more growth opportunities ahead, Evercore ISI says in an upgrade of the stock.
Analyst Mark Mahaney upgraded shares of Roku to Outperform from In Line, and raised his price target $145 from $105. That implies a 31% increase from the stock's last closing price of $110.30. He wrote in a research note Thursday that there are several catalysts in 2026 that could help boost Roku's revenue growth.
Shares of Roku were up 1% on Thursday.
On top of selling physical Roku devices that allow users to watch streaming services on their TVs, Roku makes money through advertising. Mahaney thinks a recent partnership with a tech giant could help boost growth this year.
Roku and Amazon.com announced a partnership in June to integrate their advertising systems. Marketers would be able to use Amazon's ad-buying system to reach 80 million connected-TV households in the U.S.
Mahaney also said Roku is "well positioned to benefit from significant '26 industry catalysts." This includes the coming World Cup, the Winter Olympics, and the midterm political cycle.
Roku stock jumped 46% in 2025, far outperforming the broader stock market. Investors have flocked to the stock as consumers continue to cut the cable cord, and advertisers followed.
Mahaney added that his team's analysis suggests "fundamentals can remain robust even before catalysts layer in," assuming the current economic and ad spending backdrops hold up.
Write to Angela Palumbo at angela.palumbo@dowjones.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
January 08, 2026 11:35 ET (16:35 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
Comments