Video game developer Roblox (RBLX) gained about 7% on Wednesday after JPMorgan analyst Cory Carpenter reaffirmed his confidence in the stock. He raised the price target to $125 from $120, while maintaining a Buy rating on RBLX stock.
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This upgrade reflects the analyst’s optimism due to rising user activity and accelerating momentum on the gaming platform.
The analyst highlighted record-breaking engagement levels as a primary driver for the increased price target. Over the weekend, the platform achieved an all-time peak of 32 million concurrent users, and the popular game “Grow A Garden” attracted an impressive 21.5 million users on July 12.
Looking ahead, Carpenter now expects RBLX’s bookings to grow 37% in Q2 and 30% in Fiscal 2025, both well above Roblox’s guidance. The analyst also raised his broader financial estimates, which reflect optimism about the platform’s ability to drive user growth and spending.
Roblox’s New IP Licensing Fuels Growth
In other positive news, Roblox recently disclosed a new self-serve IP licensing tool that allows developers and studios to license popular characters and digital assets. This initiative will combine iconic franchises such as “Stranger Things,” “Squid Game,” “Twilight,” “Saw,” and “Like A Dragon” into Roblox’s universe. This move is expected to attract more creators and boost revenue across the platform.
With its stock up about 107% year-to-date, Roblox is proving it’s more than just a pandemic-era favorite. It’s becoming a major player in digital entertainment, blending gaming, social interaction, and user-created content into one platform.
Is RBLX a Good Stock to Buy?
Turning to Wall Street, RBLX stock has a Moderate Buy consensus rating based on 15 Buys, four Holds, and two Sells assigned in the last three months. At $89.43, the average Roblox stock price target implies a 25.28% upside potential.
