Morgan Stanley analyst Matthew Cost reiterated an Overweight rating and $170 price target on Roblox (RBLX) after the company launched a new advertising unit. The firm sees the potential for a more compelling ads story going forward, as rewarded video is an approximately $3B opportunity and sponsored tiles could drive meaningful margin upside, Morgan Stanley told investors in a research note. The firm added that most of Roblox’s engagement is entirely unmonetized and ads are a key tool to turn that deficit into a strength.
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