Roku Stock Surges as Wells Fargo and Morgan Stanley Deliver Bullish Upgrades

Wall Street heavyweights just flipped the script on Roku.

Two major institutions—Wells Fargo and Morgan Stanley—have slapped bullish upgrades on the streaming platform's stock, sending shares sharply higher. The coordinated vote of confidence cuts through the recent market noise, suggesting analysts see a clear path for growth that the broader market has overlooked.

The Upgrade Catalyst

It's a classic one-two punch from the analyst community. When firms of this caliber move in tandem, it bypasses mere speculation and signals a fundamental re-rating. The upgrades imply a belief that Roku's ad-supported model and platform dominance can withstand competitive pressures and convert eyeballs into sustained revenue—something the stock price hadn't fully priced in until now.

What the Street is Betting On

The math is simple: more bullish analysts equals more institutional buying pressure. These upgrades aren't just opinions; they're triggers for automated buying programs and portfolio rebalancing across countless funds. It's a self-fulfilling prophecy, finance-style—where a recommendation can be as powerful as the quarterly earnings it predicts.

So, while the everyday investor was worrying about streaming wars, the big banks placed a calculated bet on the arms dealer. The stock's jump is a stark reminder that in markets, perception is often the most valuable currency—at least until the next earnings report.

TLDR

• Wells Fargo added Roku to its Q1 Tactical Ideas List with a $116 price target and Buy rating
• Morgan Stanley upgraded Roku to Overweight with a price target increase from $85 to $135
• Wells Fargo expects Roku’s 20% platform revenue growth from late 2025 to continue into first half of 2026
• Analyst projects $135 million in political ad revenue for Roku in 2026 from record midterm election cycle
• Roku stock jumped 4.3% following the analyst upgrades and positive outlooks

Roku stock climbed 4.3% to $113.44 after receiving bullish calls from multiple Wall Street firms. The streaming platform caught the attention of major analysts who see more room for growth.

Roku, Inc., ROKU

Wells Fargo added Roku to its Q1 Tactical Ideas List. Analyst Steven Cahall maintained his Buy rating with a $116 price target. He thinks the market is missing something important about Roku’s earnings power.

Morgan Stanley made an even bigger move. The firm upgraded Roku to Overweight and raised its price target to $135 from $85. That’s a jump of nearly 60% in their valuation.

Citizens also chimed in with a Market Outperform rating and $145 price target. The triple dose of analyst confidence sent shares to a new 52-week high.

Cahall sees Roku’s platform revenue growth of roughly 20% from late 2025 carrying into the first half of 2026. Wall Street expects that growth to slow to about 12% for the full year. The analyst thinks those estimates are wrong.

Revenue Drivers Stack Up

Several factors could push Roku’s numbers higher than expected. New DSP integrations should boost performance. Partnerships with Frndly and Howdy add more fuel.

Price increases and stronger activity from media and entertainment companies help too. The overall ad market appears to be recovering.

Political advertising presents a major opportunity. The 2026 midterm elections could break records for campaign spending. Cahall estimates Roku might pull in $135 million from political ads alone. That number could go even higher.

The second half of 2026 brings the World Cup. Major sporting events drive viewership and ad dollars. Roku’s home screen monetization should benefit as more sports content moves to streaming.

Movie theaters are expected to generate around $10 billion at the box office in 2026. A healthier theatrical market typically means more content flowing to streaming platforms afterward.

Wall Street Weighs In

The average price target sits at $123.10, implying about 7% upside from current levels.

The stock has moved more than 5% on 26 different days over the past year. Today’s gain ranks as notable but not extreme for Roku’s volatile trading pattern.

Roku shares are up 4.3% year to date. Investors who bought five years ago have lost money, with $1,000 now worth just $338.43.

Guggenheim issued positive comments 18 days earlier, raising its price target to $115 from $110. The firm pointed to Roku’s Core connected TV building blocks and new revenue drivers heading into 2026.

Wells Fargo expects strong growth in early 2026 from multiple sources. The Amazon DSP integration remains a question mark for some analysts. Cahall believes concerns about that partnership are overblown.