Roku Inc (ROKU) shares are soaring 5.23% in pre-market trading on Friday, as investors react positively to the company's strong third-quarter results and a wave of analyst upgrades, despite concerns about slower revenue growth in the fourth quarter.

The streaming platform provider reported Q3 revenue of $1.21 billion, in line with analyst estimates and up 14% year-over-year. The company's platform segment, which includes advertising and content distribution, saw a robust 17% growth. Notably, Roku achieved its first operating profit since 2021, signaling improved financial health.

Several analysts have raised their price targets for Roku following the earnings release. JP Morgan lifted its target to $115 from $105, citing the Q4 outlook as supporting its 2026 bull case. Susquehanna raised its target to $130 from $110, while Morgan Stanley and BofA Global Research also increased their price objectives. The positive sentiment from Wall Street appears to be overshadowing concerns about Roku's forecast of slower 12% revenue growth for Q4, compared to 14% in Q3.

Despite facing stiff competition in ad-supported streaming from giants like Amazon, Google, and Apple, Roku's strategic initiatives, including its ad partnership with Amazon and new homescreen features, are viewed favorably by analysts. The company's ability to navigate the competitive landscape while improving its financial performance has reinforced investor confidence, contributing to today's significant pre-market rally.