Roblox price target lowered to $110 from $165 at Wedbush

Wedbush lowered the firm’s price target on Roblox (RBLX) to $110 from $165 and keeps an Outperform rating on the shares. The firm says its data shows robust engagement per session, holding firm against difficult summer comparisons, indicating an improvement in monetization potential. That said, Wedbush is cutting its price target on its revised 2027 adjusted EBITDA estimate. The firm’s revised estimates and multiple reflect greater uncertainty on DAU trends. Looking to FY26, Wedbush anticipates management will provide initial guidance below current Street expectations, using the Q4 print as an opportunity to strategically de-risk the full-year narrative. Reflecting this cautious outlook, the firm has materially reset its own estimates, lowering its FY26 Bookings growth forecast to 18% down from 24%, and its Adjusted EBITDA margin to 21% down from 23%.