Needham analyst Bernie McTernan reiterated a Buy rating on Roblox (RBLX – Research Report) today and set a price target of $79.00.
Bernie McTernan has given his Buy rating due to a combination of factors including Roblox’s strong performance in the first quarter, where the company exceeded expectations in both bookings and adjusted EBITDA. Despite the limited impact on full-year guidance, this performance sets a realistic target for the rest of the year, indicating potential for continued success.
Additionally, Roblox’s management is focusing on optimizing the marketplace, which has begun to show positive results. Initiatives such as direct payments are enhancing margins, and pricing optimization is benefiting developers while reducing costs for consumers. Although the stock valuation is high, the company’s effective execution against high expectations and its potential for further market share growth support the Buy rating.
In another report released today, Wedbush also maintained a Buy rating on the stock with a $91.00 price target.