Roblox
shares were rising Friday after the video-game platform gained support from Wall Street ahead of earnings.
Truist Securities analyst Matthew Thornton upgraded
Roblox
(ticker: RBLX) to Buy from Hold and raised his price target to $37 from $35.
Shares of Roblox were up 3.3% to $31.56 on Friday.
Thornton said he thinks Roblox can turn in adjusted earnings before interest, tax, depreciation, and amortization 20% above estimates in 2025, achievable through a list of factors including the core business, immersive advertising, and new platforms.
Raymond James analysts led by Andrew Marok also were upbeat about the company, initiating coverage at Strong Buy with a price target of $41. The team highlighted multiple opportunities for long-term growth and also made mention of artificial intelligence.
“Roblox exists in the sweet spot for companies who can benefit from Generative AI, namely 1) it operates a software development
platform that 2) relies heavily on creative inputs to make content,” they wrote.
The company is expected to post third-quarter results on Nov. 8, and host an investor day on Nov. 15.
Thornton said third-quarter estimates were reasonable. “While RBLX does not provide guidance, we expect 4Q to benefit from normal seasonality as well as scaling advertising and the 10/10 launch on PlayStation,” he added.
Analysts overall are bullish on the stock with 66% rating it Buy, according to FactSet.
Write to Emily Dattilo at emily.dattilo@dowjones.com
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