Wall Street firms Pivotal Research and Wells Fargo have upgraded their ratings on Roku (ROKU) stock, celebrating the company’s victory in the Q4 earnings report. The analysts also raised their price targets, forecasting greater upside potential for ROKU stock. Overall, analysts lauded Roku’s strong Q4 performance, highlighting its dominant market position in the U.S. and a promising outlook for 2025 as key drivers for the stock’s growth. Notably, Roku’s Q4 results surpassed analysts’ expectations, boosting ROKU stock by nearly 14% in pre-market trading at the time of writing on Friday.
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Pivotal Research Upgrades ROKU on “Best-in-Class” Product
Pivotal Research upgraded Roku to Buy from Hold and raised its price target to $125 from $65, forecasting a 44% growth rate. Four-star-rated analyst Jeffrey Wlodarczak at Pivotal identifies Roku’s “best-in-class” product, its solid positioning for 2025, a dominant share of the North American market, and successful international expansion as key stock catalysts ahead.
Additionally, Pivotal believes Roku’s stock is undervalued by the market and sees significant upside, even factoring in the post-earnings rally.
Wells Fargo Upgrades on Multiple Tailwinds
Similarly, Wells Fargo’s four-star-rated analyst Steven Cahall upgraded Roku to Buy, raising its price target to $129 from $74. He now predicts an upside of more than 48%. Cahall’s upgrade is driven by Roku’s apparent growth momentum and the expected positive impact of structural political factors that are likely to benefit the company moving forward.
Furthermore, Wells Fargo stated that it has become even more optimistic about Roku’s stock after its Q4 report, emphasizing strong forward upside potential driven by factors such as inventory growth, innovations in Roku’s home screen, and political tailwinds expected in 2026 and 2028.
Is ROKU a Good Stock Buy?
According to TipRanks, ROKU stock has a Moderate Buy consensus rating based on eight Buys, three Holds, and three Sells assigned in the last three months. At $84.50, the average ROKU share price target is 2.65% below the current trading levels.
Year-to-date, ROKU stock has gained 17%.
