Roku (ROKU) Price Target Raised as CTV Growth Accelerates

Roku, Inc. (NASDAQ:ROKU) ranks among the best high growth stocks to buy now. Guggenheim maintained a Buy rating on Roku, Inc. (NASDAQ:ROKU), but increased its price target to $115 from $110 on December 4. According to the firm, Roku’s “core CTV building blocks and incremental revenue drivers into 2026” are expected to contribute to growth that exceeds expectations and boosts investor confidence.

Guggenheim has increased Roku’s revenue, gross profit, and adjusted EBITDA projections for the fourth quarter of 2025 and 2026. The updated guidance takes into account new revenue streams, including data fees for off-platform inventory and contributions from a growing variety of DSP partners, such as Amazon, as well as heightened confidence in the market for connected TV advertising.

In addition, Guggenheim believes Roku, Inc. (NASDAQ:ROKU) will gain from Winter Olympics-related publicity in Q1, estimating 14% core growth versus consensus projections of 12%. Political marketing and World Cup-related spending are also expected to provide further tailwinds this year.

On the other hand, the firm addressed concerns about Netflix possibly acquiring Warner Bros. Discovery, arguing that it does not believe the potential merger will have a meaningful impact on Roku’s distribution or video advertising revenue.

Founded in 2002, Roku, Inc. (NASDAQ:ROKU) is an American company that specializes in smart TVs and streaming gadgets. The company licenses its streaming technology to other manufacturers and runs an advertising campaign via its streaming network.

While we acknowledge the potential of ROKU to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ROKU and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.