Roblox Stock Surges as Analysts Boost Price Targets Before Q3 Earnings
Wall Street sentiment turns positive on strong user engagement metrics, with Raymond James raising its price target to $165.
Roblox Corporation (NYSE: RBLX) shares climbed on Tuesday as a wave of positive analyst revisions bolstered investor confidence ahead of the company's third-quarter earnings report. , signaling growing optimism around the online gaming platform's growth trajectory and monetization capabilities.
Leading the charge, Raymond James analyst Andrew Marok lifted his price target on Roblox to $165 from $155 while maintaining an Outperform rating. Marok's analysis points to robust underlying metrics, with a proprietary "bookings per hour" model projecting a potential 76% year-over-year surge in bookings for the third quarter. This bullish forecast is supported by external data, as a remarkable 96% year-over-year increase in time spent on the Roblox platform.
This upbeat sentiment is shared across Wall Street, with Jefferies, Piper Sandler, BofA Securities, and Morgan Stanley also raising their outlooks on the stock. The consensus has shifted significantly, with the average price target from rising 23.58% over the last three months to $152.62. Investors responded favorably to the news, with RBLX shares trading up 4.08% to $133.47 in Tuesday's session.
Despite the positive momentum, analysts note some potential headwinds. These in user preference from high-monetizing simulation games to survival genres, which typically generate less revenue. Additionally, the impact of students returning to school could temper engagement growth. All eyes are now on the company's official third-quarter results, scheduled for release on October 30, which will provide a clearer picture of its performance and future outlook.