Analyst Omar Dessouky from Bank of America Securities reiterated a Buy rating on Roblox (RBLX – Research Report) and keeping the price target at $79.00.
Omar Dessouky has given his Buy rating due to a combination of factors including Roblox’s robust performance and future growth potential. Despite the non-core platform slightly dragging on growth, Roblox’s Q4 bookings showed a healthy 26% year-over-year increase, excluding console effects, showcasing the platform’s underlying strength. December saw a reacceleration in bookings, and the company’s EBITDA exceeded expectations, demonstrating potential for significant financial beats.
Looking forward, the guidance for Q1 bookings growth of 24.5% year-over-year reflects management’s conservative approach, suggesting confidence in reaching targets. Additionally, Roblox’s position in the video game industry is strong, with its platform lowering costs for 3D content creation, which supports sustained growth projections. The company’s focus on maintaining a predictable growth path allows for an increase in EBITDA margins in the coming years, further justifying the Buy rating.
In another report released yesterday, BTIG also maintained a Buy rating on the stock with a $73.00 price target.
Based on the recent corporate insider activity of 191 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of RBLX in relation to earlier this year.