Roku, Inc. (NASDAQ:ROKU) has been making waves in the investment world as one of the top picks in ARK Invest’s Stock Portfolio for 2026. With a Strong Buy rating and an upside potential of 32%, it’s no wonder why analysts are bullish on the streaming platform giant.
Recent updates from Seaport Global analyst David Joice and Rosenblatt further solidify the positive outlook for Roku. Joice maintained a Buy rating with a price target of $130, while Rosenblatt upgraded the stock to Buy from Neutral and raised its price target to $118. The firm cited Roku’s strong performance in Q4 2025 as a key driver for the upgrade.
In Q4, Roku’s platform revenue grew by 18% year-over-year to $1.22 billion, surpassing estimates. Additionally, the company reported a diluted EPS of $0.53, beating expectations of $0.28. Rosenblatt also highlighted an optimistic forecast for the first quarter and full year 2026, driven by a broader shift towards ad-based streaming.
Rosenblatt believes that Roku is severely undervalued, especially considering its EBITDA expansion. The firm sees the company’s forecast as achievable and continues to be bullish on its prospects moving forward.
Roku operates a television streaming platform that offers viewers access to their favorite content, helps content publishers build and monetize audiences, and enables advertisers to engage with customers. While Roku presents a compelling investment opportunity, there are other AI stocks with greater upside potential and lower downside risk.
For investors seeking extremely undervalued AI stocks that could benefit from Trump-era tariffs and the onshoring trend, exploring other options may be worthwhile. It’s essential to conduct thorough research and consider all factors before making investment decisions.
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