Morgan Stanley analyst Matthew Cost assumed coverage of Roblox with an Equal Weight rating with an unchanged price target of $35. Roblox reported stronger than expected results for Q3 top line, EBITDA and October key metrics, but he believes that market expectations for October bookings had risen to greater than $240M, leading to a meaningful miss of those expectations, Cost tells investors. He has raised his FY22 and FY23 bookings estimates by 2% and 3%, respectively, and now will be watching for sustained bookings acceleration through year-end and "any learnings ahead of the immersive ads launch," Cost said.
Published first on TheFly
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