Jefferies analyst James Heaney CFA maintained a Hold rating on Roblox today and set a price target of $126.00.
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James Heaney CFA has given his Hold rating due to a combination of factors that reflect both opportunities and challenges for Roblox. The company has introduced several new features aimed at driving growth, such as the Moments feature, which could enhance user discovery and engagement through short-form videos. However, the rollout of Moments is gradual, and its success depends on careful management due to its social media-like nature.
Additionally, Roblox’s decision to increase DevEx payout rates by 8.5% is a positive move for developers, yet it also impacts margins. While user engagement remains strong, as evidenced by record user numbers in August, the overall financial outlook, including unchanged EBITDA projections for 2026 and a maintained price target of $126, suggests a balanced view of potential growth and existing risks. These factors collectively support the Hold rating, indicating that while there are promising developments, there are also considerations that temper a more bullish outlook.