JP Morgan analyst Cory A Carpenter raised estimates for Roku, Inc. (NASDAQ:ROKU) ahead of its third-quarter results to reflect recent positive trends.

Also, the analyst the price target to $92 (from $90), with an Overweight rating. The analyst expects Roku to deliver strong Platform results due to stable macro and ad trends, robust political spending, and contributions from the Olympics.

Consequently, the analyst raised the third-quarter Platform revenue estimate from 9% year-over-year to 11% and from 11% to 12% for the fourth quarter.

Apart from this, adjusted EBITDA estimates remain unchanged at $45 million for the third quarter and $25 million for the fourth quarter, reflecting expectations of second-half adjusted EBITDA being lower than the first half's $85 million due to Device sales and marketing seasonality, adds the analyst.

Carpenter also expects management to reaffirm its outlook for accelerated Platform revenue growth in the fourth quarter and 2025. The analyst notes investor anticipations are elevated with Roku shares up 40% since the second-quarter earnings (versus Nasdaq +6%).

According to the analyst, Roku is strategically positioned to benefit from the ongoing shift to streaming as TV viewing habits evolve, with the bullish outlook primarily centered on Roku's substantial advertising potential.

The analyst anticipates Connected TV to be among the fastest-growing advertising mediums over the next 3-5 years, with Roku poised to be a significant beneficiary due to its scale and strong user engagement.

Investors can gain exposure to the stock via ARK Next Generation Internet ETF (NYSE:ARKW) and ARK Fintech Innovation ETF (NYSE:ARKF).

Price Action: ROKU shares are up 0.51% at $77.80 at the last check Thursday.

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