Roblox (RBLX) stock jumped more than 6% on Monday after Alicia Reese, a top Wedbush analyst, called it the “most compelling” growth opportunity in the video game sector. The 5-star analyst’s bullish comments come amid controversies and legal woes related to child safety on the online gaming platform.
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Reese expects some ongoing volatility in Roblox’s stock price when headlines related to new hit releases or legal action appear. That said, the analyst highlighted that the company continues to respond promptly by taking meaningful actions to ensure a safe and engaging environment across its age cohorts.
Reese expects management’s “quick, decisive, and robust child safety response” to mitigate investor concerns.
Top Wedbush Analyst Stays Bullish on RBLX Stock
Reese reiterated a Buy rating on RBLX stock with a price target of $165, which reflects a 50x EV/EBITDA multiple based on Fiscal 2027 earnings estimates. Noting significant engagement driven by popular titles like Grow a Garden and Steal a Brainrot, the 5-star analyst stated that Roblox’s platform strength is broad-based across various genres.
The analyst believes that the company’s Q3 bookings growth outlook of 41% to 45% reflects the “flywheel effect” from the recent hit releases, with multiple games going viral compared to the previous quarter. Additionally, Reese noted that Roblox is in the early stages of unlocking value from games and advertising on the platform. The analyst also noted enhanced operating leverage.
Reese highlighted massive platform growth, driven by developer incentives, better infrastructure, and AI-driven tailwinds. Moreover, pricing optimization across games and regions is fueling improved revenue streams.
Reese ranks 657 out of 10,000 analysts on TipRanks. The analyst has a success rate of 67%, with an average return per rating of 16.7%.
Is RBLX Stock a Good Buy?
Roblox stock recently scored a rating upgrade from a top Wolfe Research analyst.
Overall, Wall Street has a Strong Buy consensus rating on Roblox stock based on 16 Buys, three Holds, and one Sell recommendation. The average RBLX stock price target of $146.90 implies about 18% upside potential from current levels.
