Roku Stock Gets Rating Boost as Arete Research Shifts to Bullish Stance

Arete Research made a significant move on January 5, 2026, shifting its assessment on Roku from a neutral position to a buy rating, signaling renewed confidence in the streaming platform company. This rating revision comes as analysts see near-term upside potential for the stock.

Growth Potential and Valuation Metrics

Based on analyst forecasts compiled as of December 20, 2025, Roku’s average 12-month price target stands at $117.75 per share, suggesting approximately 2.67% upside from the latest closing price of $114.68. Projections span from a conservative $73.73 to an optimistic $152.25, reflecting the range of views among market analysts. Revenue expectations for Roku project 4,799MM annually, representing a 5.63% increase. However, the company’s non-GAAP EPS guidance remains negative at -2.92, indicating ongoing profitability challenges despite top-line growth.

Institutional Interest and Market Positioning

A total of 976 funds and institutions maintain positions in Roku, with ownership increasing by 17 new institutions (1.77%) in the latest quarter. The collective institutional portfolio weighting in Roku averages 0.21%, up 9.46% sequentially. Total institutional shareholding reached 126,007K shares, reflecting a 0.21% expansion over the previous three months.

Notably, the put/call ratio for Roku stands at 1.44, pointing toward a more cautious market sentiment despite the analyst upgrade. This divergence suggests some investors remain concerned about near-term price movements despite the positive rating revision.

Major Fund Activity and Positioning Changes

Key institutional investors have adjusted their Roku holdings in recent quarters. Fidelity Advisor Growth Opportunities Fund (FAGAX) currently owns 8,971K shares (6.86% of the company), down from 10,096K shares previously, representing a 12.54% reduction. The fund simultaneously trimmed its portfolio allocation to Roku by 24.35%.

ARK Investment Management’s position declined to 7,352K shares (5.62% ownership) from 8,460K shares, marking a 15.07% decrease. Despite recent stock price movements, ARK reduced its Roku weighting by 19.62% over the quarter.

The ARK Innovation ETF (ARKK) holds 5,917K shares representing 4.52% of Roku, slightly increased from 5,809K shares (1.82% growth), though the fund still cut its portfolio allocation by 10.93% sequentially.

In contrast, Vanguard Total Stock Market Index Fund Investor Shares (VTSMX) increased exposure to Roku, holding 4,147K shares (3.17% ownership) compared to 4,059K previously, and boosted allocation by 13.73% during the same period.

Sumitomo Mitsui Trust Holdings reduced its stake to 3,689K shares (2.82% ownership) from 4,452K shares, a 20.69% decline with corresponding 12.83% lower portfolio allocation.

The mixed positioning among major fund managers suggests a transitional period for Roku, with some institutional investors taking profits while others maintain or increase exposure ahead of potential business improvements.