J.P. Morgan analyst Cory Carpenter has maintained their bullish stance on RBLX stock, giving a Buy rating yesterday.
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Cory Carpenter has given his Buy rating due to a combination of factors influencing Roblox’s platform engagement and growth potential. Despite a recent decline in peak concurrent users (CCUs) over the past four weeks, Carpenter notes that this trend is partially attributed to seasonal factors, and year-over-year trends remain strong. The consistency in engagement for popular experiences like ‘Steal the Brainrot’ and ’99 Nights in the Forest’ indicates a stable user base, which is a positive sign for future bookings.
Carpenter also highlights the importance of monitoring engagement as a leading indicator for bookings, especially with the upcoming facial estimation feature rollout. This feature could potentially enhance user experience and drive further engagement. Additionally, the emergence of ‘Steal the Brainrot’ on Fortnite, despite being a copycat of a Roblox game, suggests a broader appeal and potential for cross-platform success, reinforcing the Buy rating for Roblox’s stock.
In another report released yesterday, Morgan Stanley also maintained a Buy rating on the stock with a $170.00 price target.
Based on the recent corporate insider activity of 214 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of RBLX in relation to earlier this year.