Oppenheimer upgraded Roku (ROKU) to “outperform” from a previous investment rating of “perform” on Friday, citing multiple catalysts and attractive valuation.
The research firm believes the Amazon partnership should ramp meaningfully throughout 2026, which should drive incremental ad spend on Roku.
Google Trends data have also been indicating strong viewership for the Winter Olympics, and Oppenheimer believes the event could conservatively contribute 400 bps to Roku’s Q1 Platform revenue.
“With core Platform growth averaging 16% the past 4 years, AMZN poised to add 100 bps, and Olympics another 100 bps, we could see FY26/FY27 core Platform revenue (ex-political, 606 & Frndly) +17%/+16% vs. our +15%/+16%,” the research firm said.
Oppenheimer noted that Roku generated $67M of political revenue, or 2% Platform revenue, in 2024 and therefore conservatively assumed $45M, or 1% of Platform revenue, for 2026.
ROKU has a fresh price target of $105, implying an upside of 14%.