Roku, Inc. (ROKU) remains a strong contender in the streaming TV market, with BofA Global Research reiterating a "Buy" rating and maintaining a price objective of $90, based on 2.5x EV/2025 revenue estimates. As of November 21, Roku's stock was trading at $68.67, down 0.06% from the previous close. The recent announcement of The Trade Desk's new streaming TV OS, Ventura, is not seen as an immediate threat to Roku. BofA highlights Roku's established market presence, noting, "Roku has been competing successfully for years against other established CTV operating systems such as Android TV and Fire TV."
Roku's OS continues to lead the North American market, holding a 27% share as the top Smart TV OS. The company benefits from strong relationships with TV OEMs, offering a comprehensive package that includes TV reference design, component sourcing, and quality assurance, which helps OEM partners reduce R&D costs and gain market share. BofA expects Roku to expand its partnerships with media networks and DSPs, enhancing its advertising capabilities and international growth prospects.
Despite the potential competition from Ventura, BofA believes it will take years for it to pose a significant threat to Roku's market share.