JPMorgan has reiterated an Overweight rating on Roku Inc. (NASDAQ:ROKU) and kept a $125.00 price target, underlining the bank's positive view of the company’s platform revenue trajectory. The firm’s target implies a sizeable premium to Roku's latest quoted trading level of $82.93 and aligns with InvestingPro data indicating the shares are currently trading below a Fair Value estimate.
At the center of JPMorgan’s rationale is platform revenue growth that came in at 18%, modestly ahead of investor expectations of roughly 17%. The bank’s analysis isolates what it calls core platform growth, which it says accelerated from 20% in the third quarter to 25% in the fourth quarter after adjusting for political advertising, the Frndly subscription service, and impacts from accounting standard ASC 606. That acceleration builds on Roku’s broader revenue expansion, which totaled 16.61% over the last twelve months, and a five-year revenue compound annual growth rate of 30%.
JPMorgan also flagged Roku’s guidance for 2026 platform revenue growth of 18%, a forecast that exceeds consensus estimates at about 15%. Company management characterized its second-half outlook as conservative relative to its first-quarter guidance of 21%, a framing that JPMorgan sees as noteworthy. According to InvestingPro data referenced by the bank, three analysts have recently raised their earnings estimates for Roku for the upcoming period.
The investment bank identified several drivers it expects will support continued platform growth. Those include a ramp in the Amazon DSP partnership, a slate of advertising-heavy events such as the U.S. midterms, the World Cup, and the Winter Olympics, enhancements to Ads Manager, and expansion of subscription offerings including Frndly, Howdy, and Premium Subscriptions.
JPMorgan had previously named Roku its top pick for the year, forecasting that platform revenue growth could accelerate to more than 20% for the full year, assuming operating expenses remain largely steady. The bank’s reiteration of the Overweight rating and unchanged price target reflects continued confidence in that thesis.
Roku’s stock has shown notable volatility. The company’s beta is 1.99 and the shares have fallen 23.56% year-to-date. Despite share-price pressure, Roku’s balance sheet metrics indicate liquidity and a conservative funding posture: a current ratio of 2.74 and a net cash position, with cash balances exceeding debt held on the balance sheet.
In other financial developments, Roku recorded a strong fourth quarter of 2025 on the earnings front. The company reported adjusted earnings per share of $0.53, well above an expected $0.27, representing a 96.3% earnings surprise. Following the release, Roku’s stock fell in after-hours trading - an outcome the report notes could reflect broader market movements or investor profit-taking rather than company fundamentals alone.
Those results underscore Roku’s ability to surpass earnings expectations, which remains a focal point for market participants and analysts. The firm’s recent performance and elevated guidance could factor into future analyst recommendations and valuation assessments, and industry watchers are likely to keep monitoring both top-line platform growth and profit metrics closely.
For readers seeking additional context, the bank points to more detailed analysis and supplemental insights available in a Pro Research Report on InvestingPro, which includes additional commentary and ProTips related to Roku’s outlook.
Takeaway - JPMorgan is maintaining an Overweight rating on Roku and a $125 price target based on accelerating platform revenue growth, stronger-than-expected quarterly earnings, and a 2026 platform-revenue guide that exceeds consensus. The company’s balance sheet strength contrasts with recent share-price volatility.