Roku, Inc. (NASDAQ:ROKU) shares are trading higher on Friday.

Guggenheim analyst Michael Morris upgrades Roku from Neutral to Buy with a $75 price target.

The analyst anticipates investor interest in Roku will increase as the company approaches its third-quarter earnings report in November.

Roku is advancing efforts to expand its video inventory advertising sales via third-party demand-side platforms and enhance monetization on its home screen.

The analyst noted that this anticipated progress is expected to further boost confidence in Roku as a standout top-line growth story for 2025. However, Guggenheim Securities indicated that its primary concerns about the company remain unchanged.

The analyst adds that strengthened monetization and effective leadership by Roku Media President Charlie Collier and CFO Dan Jedda should support the company's growth narrative and disciplined performance over the next three to six months.

According to Benzinga Pro, ROKU stock has lost over 13% in the past year. Investors can gain exposure to the stock via ARK Innovation ETF (NYSE:ARKK) and ARK Next Generation Internet ETF (NYSE:ARKW).

Earlier this month, Roku reported quarterly losses of 24 cents per share which beat the analyst consensus estimate of losses of 43 cents by 44.19%.

Quarterly sales clocked in at $968.18 million, which beat the analyst consensus estimate of $937.89 million by 3.23% and represents a 14.28% increase from the same period last year. Platform revenue was $824 million, up 11% year-over-year.

Roku expects third-quarter total net revenue of $1.01 billion and total gross profit of $440 million.

Price Action: ROKU shares are trading higher by 12.5% to $69.56 at last check Friday.