Roblox (RBLX – Research Report), the Communication Services sector company, was revisited by a Wall Street analyst yesterday. Analyst Brian Pitz from BMO Capital reiterated a Buy rating on the stock and has a $75.00 price target.
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Brian Pitz has given his Buy rating due to a combination of factors that highlight Roblox’s potential for growth and resilience. Despite a slight miss on expectations for bookings, Roblox’s adjusted EBITDA exceeded projections, showcasing its strong operational management. The company’s daily active users are increasingly from the 13+ age group, which indicates a maturing user base that is likely to spend more time and money on the platform.
Additionally, Roblox’s management plans to improve economic incentives for developers, which is expected to attract higher-quality content creators and drive growth in bookings. Although the company’s advertising business is still in its early stages, it presents a promising opportunity for future revenue expansion. These strategic developments have led to an increase in the target price for Roblox stock, reflecting confidence in its long-term potential.
In another report released today, Morgan Stanley also maintained a Buy rating on the stock with a $75.00 price target.
Based on the recent corporate insider activity of 191 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.