Roku (ROKU 8.11%) stock is surging Wednesday. The streaming specialist's share price was up 9.2% as of 3:15 p.m. ET, and had been up as much as 10.5% earlier in the daily session.

Roku is getting a big boost from positive analyst coverage today. Guggenheim Securities published a note on the stock before the market open this morning, issuing a buy rating on the stock and raving about the business's outlook.

Roku stock surges as analyst reiterates bullish outlook

Guggenheim analyst Michael Morris thinks that 2025 is shaping up to be a great year for Roku and expects that the stock will be a winner, but he actually lowered his one-year price target on the stock from $115 per share to $110 per share today. On the other hand, the move was entirely driven by investors becoming more cautious with valuations on companies in the sector and had nothing to do with the outlook on business performance. The new price target still suggests additional upside of 36% for the stock.

What's next for Roku?

With today's gains, Roku stock is now up 16% over the last year. On the other hand, the company's share price is still down 26% from its high point across the stretch -- and a bigger rebound could be in the cards.

Roku reported strong fourth-quarter results earlier this month, and it looks like the business will be able to continue adding new members to its streaming ecosystem and boosting average revenue per user. Guggenheim estimates that the business will be able to generate $350 million in free cash flow this year and $550 million in FCF for 2026. If so, the stock could put up very strong performance.