Roblox price target raised to $79 from $72 at Needham

Needham raised the firm’s price target on Roblox (RBLX) to $79 from $72 and keeps a Buy rating on the shares. The company beat the firm’s expectations handily in Q1 on both bookings and adjusted EBITDA, though the flowthrough to FY25 guidance was still limited, which sets an achievable bar for the remainder of the year, the analyst tells investors in a research note. Optimizing the marketplace appears to be a key focus for management, and initiatives are showing early signs of success, with direct payments being margin accretive and pricing optimization increasing earnings for developers, Needham added.