What Happened?
Shares of streaming TV platform Roku (NASDAQ: ROKU) jumped 3.5% in the morning session after Morgan Stanley upgraded its rating on the stock to Overweight while Wells Fargo reiterated its positive outlook.
Specifically, Morgan Stanley increased its price target on the streaming company to $135.00 from $85.00. Separately, Wells Fargo maintained its Overweight rating and $116.00 price target, citing expectations for continued platform growth through the first half of 2026. The firm projected that Roku's platform sales growth would extend into early 2026. Adding to the positive sentiment, Citizens also reiterated its Market Outperform rating on the stock with a $145.00 price target.
After the initial pop the shares cooled down to $113.44, up 4.3% from previous close.
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What Is The Market Telling Us
Roku’s shares are very volatile and have had 26 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 18 days ago when the stock gained 3.6% on the news that Guggenheim maintained its Buy rating on the company but increased its price target to $115 from $110.
The investment firm highlighted Roku's “core CTV building blocks and incremental revenue drivers into 2026” as factors expected to contribute to growth that could exceed expectations and boost investor confidence. Following this view, Guggenheim also raised its revenue, gross profit, and adjusted profit projections for the company for the fourth quarter of 2025 and for the 2026 fiscal year.
Roku is up 4.3% since the beginning of the year, and at $113.44 per share, has set a new 52-week high. Investors who bought $1,000 worth of Roku’s shares 5 years ago would now be looking at an investment worth $338.43.
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