Needham analyst Bernie McTernan maintained a Buy rating on Roblox today and set a price target of $159.00.
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Bernie McTernan has given his Buy rating due to a combination of factors observed at the recent Roblox Developer’s Conference. One significant reason is the launch of ‘Moments,’ a new feature aimed at enhancing search and discovery on the platform. This development is seen as potentially transformative for user engagement and in-app purchases in the short term, with advertising benefits expected to unfold over time.
Another factor influencing the Buy rating is Roblox’s initiative to allow experiences to advertise off-site, marking a strategic move to attract more users to the platform. This could significantly expand the total addressable market for mobile gaming acquisitions. Additionally, while developer expenses are expected to rise, this has already been accounted for in the company’s guidance as Roblox continues to invest in its content ecosystem. The ongoing improvements to the platform’s infrastructure are also seen as a critical driver of its impressive growth trajectory.
In another report released on September 2, BMO Capital also reiterated a Buy rating on the stock with a $150.00 price target.
Based on the recent corporate insider activity of 233 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.