Brian Pitz, an analyst from BMO Capital, reiterated the Buy rating on Roblox. The associated price target was raised to $160.00.
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Brian Pitz has given his Buy rating due to a combination of factors that highlight Roblox’s strong market position and growth potential. One of the key reasons is the company’s ability to maintain a competitive edge in the user-generated content (UGC) space, despite increasing competition from platforms like Fortnite and potential entrants like GTA VI. Roblox’s recent increase in developer revenue share demonstrates its commitment to supporting its creator community, which is crucial for sustaining engagement and platform growth.
Additionally, Pitz notes that Roblox’s significant daily active user base and the number of creators earning payouts provide a substantial competitive moat. The company’s strategic investments in infrastructure, trust, and safety are expected to moderate, allowing operational leverage to enhance bookings growth. Furthermore, the potential for a growing advertising business presents an additional revenue stream, reinforcing the positive outlook for Roblox’s financial performance. These factors contribute to Pitz’s decision to reiterate an Outperform rating and raise the target price to $160.
In another report released yesterday, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $159.00 price target.