What happened

Shares of connected-TV platform company Roku (ROKU -2.19%) jumped on Friday after an analyst put a note out for investors. As of 1 p.m. ET, Roku stock was up 9%.

So what

Dozens of analysts follow Roku stock and Jefferies analyst Andrew Uerkwitz joined them today by initiating coverage with a hold rating, according to The Fly. Uerkwitz gave Roku stock a price target of $45 per share, which would imply about 25% downside as of this writing.

On the surface, it wouldn't seem like a hold rating with a price target that low would cause Roku stock to jump. Moreover, Uerkwitz reportedly told investors that Roku is facing challenges in the ad market and he expects monetization to fall -- not encouraging.

However, he also reportedly wrote that the downside risk for Roku stock is limited at this point. So it's possible investors focused on that good news.

Now what

In the third quarter of 2022, 88% of Roku's revenue came from its platform segment, which is mostly comprised of advertising revenue. For the upcoming fourth quarter, management expects platform revenue to fall as the economy causes advertising budgets to pull back. Therefore, Uerkwitz's comments shouldn't come as a surprise to investors.

Roku stock could indeed go lower as headwinds blow, in my opinion. However, if the company can retain its 65 million active accounts and even grow its user base in coming quarters, then investors can reasonably expect its revenue to rebound when brands start spending on advertising again down the road.