Analysts Upgrade Roku Stock: Can It Deliver and Go Beyond?

Key Points

• Wall Street analysts think that Roku stock can now deliver an additional double-digit percentage run higher, and investors should watch out for it.
• All the fundamentals point to the chances of this higher run happening in the coming quarters.
• Institutions are buying into this momentum, likely to continue.

When it comes to finding upside in the stock market, investors are often better off doing their own homework and analysis. However, in markets like today’s, with technology stock valuations near all-time highs and a lot of ongoing narratives around economic and political developments, it can be useful to grab a helping hand from the people who find investment ideas for a living.

Wall Street analysts are often careful about boosting or rating a stock (especially in times like these) to protect their careers and reputations. With this in mind, any new calls from analysts can be a sign of something bigger brewing in the background for the stocks of their choice, and that is where investors can gain an edge.

Recently, Wall Street analysts decided to give shares of Roku Inc. NASDAQ: ROKU a new reason to keep pushing higher in the coming months and quarters. Investors should keep these recent views in mind when finding not only safety but also potential upside in today’s stock market. Rooted in price action and fundamentals, these are some of the reasons analysts went with Roku today.

A Business Model Free of Drama

Arguably, one of the main reasons to consider Roku stock is its business model. A streaming platform with some hardware exposure, Roku derives most of its revenue from subscriptions, providing its financials with the stability and predictability that investors likely prefer in an uncertain setting.

As of July 2025, Justin Patterson, an analyst at KeyCorp, decided to boost his rating from Sector Weight to an Overweight for Roku stock. This sentiment boost also came along with a new valuation for up to $115 per share, directly calling for a new 52-week high level to be broken through.

Looking at a potential upside of as much as 28% from where the stock trades today, investors can see that this preference for a stable business model carries the potential to deliver on these views, if not outright bring Roku into an even higher price.

Knowing that institutions are often hunting for upside momentum plays like these to get behind, it shouldn’t come as a surprise to see some recent buying from “smart money” managers recently. As of early July 2025, those from Assenagon Asset Management initiated a stake worth up to $30.5 million in Roku stock, a sign of higher expectations to come in the future.

Chances are that these institutional players aren’t done buying. Investors could expect more inflows as the stock begins to move higher, especially if it breaks through its current 52-week high and meets analysts' call today.

What Makes Roku Attractive

As these analysts focus on the company's underlying financials, so should investors. Looking at Roku's most recent quarterly financial results, the key components that can bring this stock higher start to stand out, further strengthening this bullish thesis moving forward.

In terms of revenue, Roku reported up to 17% growth on an annual basis, delivering up to $880.8 million net. Keeping in mind that this subscription revenue is what makes the business so attractive, investors can also note that streaming hours were up by 5.1 billion compared to the same quarter last year, a trend that is likely to continue into the future.

With more hours watched and subscriber growth, it should be expected that Roku may also deliver a somewhat higher bottom line in the coming quarters. For this reason, broader markets are also willing to express their optimism for Roku’s future results and growth.

By paying a price-to-book (P/B) multiple of 5.2x, markets are pricing Roku stock above the rest of the broadcasting peer group and its valuation of only 2.2x. While some investors may be wary of paying up for any given stock, seasoned participants understand that markets will always be willing to pay up for the stocks they believe can outperform.

This is another factor investors need to consider, especially as the company delivered up to $138.7 million in operating cash flow, a massive jump from $46.7 million during the same quarter last year. As cash flow is the lifeblood of any business, markets and analysts understand that Roku has all the fundamentals in place to start heading higher.