Roblox, the Communication Services sector company, was revisited by a Wall Street analyst today. Analyst Cory Carpenter from J.P. Morgan reiterated a Buy rating on the stock and has a $125.00 price target.
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Cory Carpenter has given his Buy rating due to a combination of factors that highlight Roblox’s strong performance and growth potential. The platform has seen a significant increase in user engagement, with record numbers of concurrent users and successful experiences like Grow A Garden driving this trend. This increased engagement has led to a rise in bookings estimates, which are projected to grow substantially above the company’s guidance.
Carpenter’s confidence in Roblox’s growth is further supported by the correlation between average concurrent user growth and bookings growth, indicating a robust engagement lift. Additionally, the potential for attracting more developers and advertisers, along with new revenue streams in advertising and commerce, positions Roblox for sustained growth. These factors, combined with the upward revision of the price target to $125, underscore the positive outlook for Roblox’s stock.
In another report released on July 10, Citi also maintained a Buy rating on the stock with a $123.00 price target.
Based on the recent corporate insider activity of 243 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.