Roblox catalysts lining up well, says Roth MKM

Roth MKM analyst Eric Handler keeps a Buy rating and $48 price target on Roblox heading into its Q3 earnings, also calling the stock the firm’s Top Idea in video games/interactive entertainment. Roblox’s Q3 bookings should be in line with estimates and there could be some upside with adjusted EBITDA as operating leverage begins to appear, the analyst tells investors in a research note. Furthermore, the company’s investor meeting on November 15 could offer multiple positive events including guidance metrics, a deep dive into the advertising opportunity, and clarification about margin expansion, the firm added.