Bank of America is bullish on Roku (ROKU.US): Improved macroeconomic sentiment and partnership with Amazon.com, Inc. (AMZN.US) will bring benefits.

Bank of America Corp analyst reiterated a bullish rating on Roku (ROKU.US), raising the target price from $100 to $110 due to improving macroeconomic sentiment and the recent announcement of a partnership with Amazon.com, Inc. (AMZN.US) being seen as a positive factor. It is worth noting that the new target price represents about a 25% upside from Roku's Thursday closing stock price. Bank of America stated that the uncertainty faced by advertising trends in recent months "seems to be diminishing" and that "market sentiment has improved," with the situation improving as the second quarter progresses. The bank also believes that Roku's partnership with Amazon.com, Inc. "once again proves Roku's intention to adopt a more flexible strategy on its platform and promote further interoperability." The bank pointed out that this partnership will bring significant opportunities as Roku is expected to improve its advertising inventory monetization in the future and deepen its cooperation with other demand-side platforms (DSP). In a research report on July 3, Bank of America stated, "Roku still has significant room for revenue and profit expansion and should benefit from several favorable industry trends and company initiatives, including: 1) growth in connected TV (CTV) advertising; 2) structural growth of streaming video domestically and internationally; 3) improvement in the fill rate in its advertising business." The bank raised its revenue forecast for Roku in 2025 from $45.5 billion to $45.9 billion, while also increasing its EBITDA forecast for 2025 from $3.51 billion to $3.60 billion.