Evercore ISI upgrades Roku, highlights 2026 catalyst pipeline

Investing.com -- Evercore ISI has upgraded Roku to Outperform from In Line, arguing the streaming platform is poised to benefit from a series of company-specific and industry-wide catalysts in 2026.

Analyst Robert Coolbrith wrote that the firm is taking a “New Year, New View on Roku,” lifting its price target to $145 from $105.

Evercore ISI said Roku is positioned for “a number of company-specific catalysts in ’26, including Amazon DSP integration, growth of Roku Ad Manager, new premium subscription channels… and a home screen refresh.”

Coolbrith added that Roku should also be supported by “significant ’26 industry catalysts,” including the World Cup, Winter Olympics and the U.S. mid-term political cycle.

The firm believes Roku exited 2025 with pro forma fourth-quarter platform revenue growth of 21%, calling consensus expectations for 2026 platform revenue growth of 15 percent conservative.

Evercore ISI also sees margin expansion ahead, forecasting a 2026 adjusted EBITDA margin of 10.8%, with EBITDA-to-free-cash-flow conversion near 100 percent.

Coolbrith highlighted the potential impact of Amazon DSP integration, describing the exclusive multi-year deal as an opportunity that “allows Amazon to uniquely match its shopper graph with Roku’s audience graph.”

Evercore ISI estimates the partnership could generate $110 million in near-term annualized revenue and $80 million of adjusted EBITDA lift.

With Roku expected to reach GAAP profitability on a trailing basis in the fourth quarter of 2025, Evercore ISI said the company “should be a solid candidate for the S&P MidCap 400,” calling index inclusion an additional catalyst heading into 2026.

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