Piper downgrades Roblox to Neutral on lack of visibility

Piper Sandler downgraded Roblox (RBLX) to Neutral from Overweight with a price target of $50, down from $100. The firm cites the company’s “weak” Q2 outlook for the downgrade. Roblox’s age-verification headwinds create “too little” visibility in the near-term, the analyst tells investors in a research note. Piper thinks a few quarters will be needed to demonstrate sustained improvement and a path back to 20% bookings growth. The firm reduced Roblox’s estimates and downgraded the shares.