In a report released today, Omar Dessouky from Bank of America Securities maintained a Buy rating on Roblox, with a price target of $171.00.
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Omar Dessouky has given his Buy rating due to a combination of factors that highlight Roblox’s strong growth potential and strategic positioning in the gaming market. He anticipates that Roblox will surpass conservative guidance, particularly with a favorable setup for Q3, where there is significant upside risk to booking growth estimates. This optimism is driven by the platform’s ability to retain gamers and maintain high growth rates, even after the surge from popular experiences.
Furthermore, Dessouky points out that Roblox’s long-term prospects are bolstered by its emerging status as a ‘hit factory’ and its ambitious goal to capture 10% of the gaming market by 2030. The company’s execution towards margin leverage and the potential for broader investor participation also support the Buy rating. Dessouky’s price objective of $171 reflects confidence in Roblox’s ability to sustain its high valuation multiple, aligning with other high-growth software companies.
In another report released on October 16, BTIG also maintained a Buy rating on the stock with a $180.00 price target.
Based on the recent corporate insider activity of 226 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.