Roblox price target lowered to $35 from $42 at Morgan Stanley

Morgan Stanley analyst Matthew Cost lowered the firm’s price target on Roblox to $35 from $42 and keeps an Equal Weight rating on the shares. Roblox reported “solid” Q1 results, but Q2 guidance and a reduced FY24 outlook “disappointed,” with weaker content offerings and app performance issues weighing on engagement and spending, the analyst tells investors. Following the report and call, the firm is “incrementally cautious on the potential that advertising and ecommerce could no longer be call options,” but rather core drivers of the company’s greater than 20% long-term bookings growth outlook.