JPMorgan has initiated coverage of Roku Inc. (NASDAQ: ROKU) at Neutral with a $160 price target, up from $150, following the $160-per-share cash-and-stock acquisition agreement announced by Fox Corporation on June 15.
The deal values Roku at approximately $22 billion and positions Fox as the successful bidder over rival Netflix in a competitive auction for the streaming platform. Roku’s stock was trading at $157.49 on Monday, near its 52-week high of $159.69.
JPMorgan’s valuation framework assumes Roku’s 2028 free cash flow will reach $1.2 billion, supporting a multiple of roughly 16 times to justify the $160 target. The bank’s outlook extends to December 2027, aligning its price target horizon with the expected free cash flow trajectory.
The initiation comes as several firms adjust their ratings following the acquisition announcement. Seaport Global Securities, Wedbush, and JPMorgan have all assigned Neutral ratings to Roku, with Wedbush removing the stock from its Best Ideas List. Wedbush maintained a $155 price target.
Roku reported second-quarter 2026 revenue of $1.355 billion, a 21.9% year-over-year increase and ahead of guidance by about 5%. Platform revenue grew 25% year-over-year, surpassing management’s 20% target, while adjusted EBITDA reached $254 million, significantly beating the $170 million guidance. Advertising and subscription revenues each rose 25% year-over-year, contributing to an adjusted EBITDA margin of approximately 19%.
Roku operates as a leading TV streaming platform with a global reach exceeding 100 million households, a scale that underpinned Fox’s strategic bid. The transaction remains subject to regulatory and shareholder approvals.
