Roblox’s Promising Growth and Strategic Advantages Drive Buy Rating

Omar Dessouky, an analyst from Bank of America Securities, reiterated the Buy rating on Roblox (RBLX – Research Report). The associated price target was raised to $103.00.

Omar Dessouky has given his Buy rating due to a combination of factors that highlight Roblox’s promising growth trajectory. The company’s core business is expected to maintain over 20% year-over-year growth through 2027, and there is increased confidence in its ability to invest aggressively for future expansion. Additionally, the success of the viral hit ‘Grow A Garden’ is anticipated to significantly boost performance in the upcoming quarters, surpassing previous guidance and expectations.
Furthermore, Roblox’s structural advantages are becoming more apparent, particularly in its Search & Discovery capabilities, which are poised for improvement. The company’s free-to-play model and virtual currency transactions are generating more economic surplus compared to traditional mobile and console gaming markets. These factors, combined with the potential for international expansion and a favorable valuation, underpin Dessouky’s optimistic outlook and the raised price objective for the stock.

Dessouky covers the Communication Services sector, focusing on stocks such as Take-Two, Magnite, and Roblox. According to TipRanks, Dessouky has an average return of 35.1% and a 64.29% success rate on recommended stocks.

In another report released on June 3, J.P. Morgan also maintained a Buy rating on the stock with a $100.00 price target.