Jefferies on Thursday upgraded Roku (ROKU) to “buy” from a previous investment rating of “hold” and said the company offers “one of the cleanest revision stories in internet heading into 2026.”
Shares of the company rose as much as 6.6% to $112.39, hitting a near four-year high, before paring those gains. Stock was also among the top three gainers in the communications services sector in today’s trading session before giving up the gains.
The research firm said it sees upside to Wall Street’s estimate of 15% year-over-year growth for Roku’s platform revenue in 2026. It also expects more than 20% upside from demand-side platform ramps, political tailwinds, subscription momentum, and home screen revamp optionality.
“ROKU is in a fundamentally different stage than many internet peers, where its platform remains undermonetized with plenty of product levers to pull, while not needing to scale its opex base,” Jefferies said in its research note.
ROKU has a price target of $135, hiked from $100, implying an upside of 28%. The stock has outperformed the S&P 500 so far this year.