MoffettNathanson analysts upgraded Roku (NASDAQ:ROKU) from Sell to Neutral, adjusting the price target to $70.00. The shift in rating reflects confidence in Roku’s near-term performance, despite maintaining a cautious long-term outlook.

Earlier in January, the firm had downgraded Roku to Sell, arguing that its stock was trading at an unjustified multiple, even as near-term estimates remained ahead of consensus. However, the latest upgrade acknowledges that the company’s upcoming results are likely to exceed expectations, suggesting strong momentum in the immediate future.

The analysts believe that 2025 could unfold as a "beat-and-raise" story for Roku, with the potential for performance surpassing initial projections. While the firm’s long-term concerns about the company’s valuation persist, the near-term outlook appears more promising, warranting a more neutral stance on the stock.