In a report released today, Eric Sheridan from Goldman Sachs upgraded Roblox to a Buy, with a price target of $180.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Eric Sheridan has given his Buy rating due to a combination of factors that indicate a promising future for Roblox. The company’s recent earnings report highlighted strong growth in bookings, revenue, and daily active users, which management believes will continue to scale over the long term. This optimism is supported by the sustained momentum in the growth of creators and developers, which is expected to expand the variety of content available to users.
Despite some disappointment in the Q4 and initial 2026 adjusted EBITDA margin commentary, which fell short of expectations, the company’s strategic investments are seen as a positive move for future growth. The ongoing scaling of Roblox’s discovery capabilities is also a key factor in the Buy rating, as it suggests a robust platform that can drive long-term revenue compounding and margin improvement.
In another report released yesterday, Raymond James also downgraded the stock to a Buy with a $165.00 price target.