Shares of Roblox (NYSE:RBLX) are higher today, which can be attributed to several Wall Street analysts upgrading the video game company, highlighting an approaching turning point. Roth MKM analyst Eric Handler upgraded Roblox shares from Hold to Buy and increased his price target from $37 to $48, expecting the company to achieve adjusted EBITDA growth in 2024 as it slows headcount and compensation after its Q1 results. Handler now predicts over 20% adjusted EBITDA growth next year, with expanding margins, compared to the previous flat outlook.
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Handler was surprised at the positive year-over-year growth in average bookings per daily active user for the first time in six quarters, attributing this to better international monetization and success in growing the user base over 13 years old. Benchmark analyst Mike Hickey also upgraded Roblox to “buy,” citing key performance indicators, renewed growth, and enhanced operational focus.
Overall, Wall Street analysts have a consensus price target of $45.87 on RBLX stock, implying 15.34% upside potential, as indicated by the graphic above.
