BofA ups PT for Roku on Amazon partnership, improving advertiser sentiment

Analysts at Bank of America hiked their price target on Roku (NASDAQ:ROKU) and reiterated their bullish rating, citing improving macroeconomic sentiment and viewing its recently announced Amazon (AMZN) partnership as favorable.

The research firm said the uncertainty seen in the last few months for advertising trends “appears to be abating,” and “sentiment has improved” as the second quarter progressed.

They see the Amazon partnership “as another proof point that Roku intends to be more flexible and drive further interoperability within their platform.”

The partnership will provide a significant opportunity as monetization of their advertising inventory improves going forward and further deepens their relationships with other DSPs, BofA said.

“Roku has notable scope to keep expanding its top and bottom line and should benefit from several favorable industry trends along with company-specific actions,” BofA said in its July 3 research note. “These include 1) growth in CTV advertising, 2) secular growth in streaming video domestically and internationally, and 3) improving fill rates (the % of ad spaces being successfully filled) in its advertising business.”

BofA raised its 2025 revenue forecast for Roku to $4.59B, from $4.55B. It also upped its FY EBITDA forecast to $360M from a prior guide of $351M.

ROKU has a PT of $110, up from $100, implying an upside of 27.3%. Stock is up 2.2% by midday on Thursday.