Morning Summary - Jun 09 2026

Research evidence excerpt

Morning Summary - Jun 09 2026

MORNING SUMMARY

June 9, 2026

PRICE TARGET CHANGES

ROKU, INC. Buy

ROKU – BUY – Say Howdy to Upside Scenarios: Raising Target On

Runway for Early-Stage Initiatives ROKU $123.57 Price$145.00TargetMichael Morris, CFA

804 253 8025, michael.morris@guggenheimpartners.com

Current Q Next Q Current FY Next FY

Taylor Manley

804 253 1336, taylor.manley@guggenheimpartners.com $0.59 $0.42 $2.46 $3.80

CLICK HERE TO ACCESS THIS REPORT Market Cap (M) Metric Mult Curr Yr. Mult Next Yr.

Published on June 9, 2026 $18,251 EPS ($) - -

Key Message: We believe consensus estimates implying 2026 as the peak Platform revenue growth year underappreciate the runway of multiple initiatives

that remain in early stages of contribution. Recent management commentary reinforces our conviction that Roku's monetization engine is still ramping

across advertising and subscriptions, with several drivers yet to reach full potential. We highlight three areas where we see upside: 1) Penetration runway

supported by structural advantages – Roku has achieved 100mm streaming households, yet the company's purpose-built OS, which requires significantly

less memory than competing platforms, is creating incremental OEM partnership opportunities as memory costs have risen 7-15x. Management noted

OEMs are proactively seeking expanded Roku partnerships due to this BOM advantage. Internationally, Mexico has near-U.S. scale but 4x lower ARPU

than Canada, suggesting significant monetization runway; 2) Advertising growth vectors – the new home screen is only ~20% rolled out with biddable in-

tile ad units planned, Amazon DSP is "not yet fully ramped," DV360 integration is still building, and Ads Manager for SMBs addresses a ~$600bn TAM.