Roblox price target raised to $37 from $32 at Wedbush

Wedbush analyst Nick McKay raised the firm’s price target on Roblox to $37 from $32 and keeps a Neutral rating on the shares. The firm notes Q4 bookings were modestly above its estimates at $899M, with adjusted EBITDA being the much bigger surprise at $183M and Wedbush’s estimate at $88M and consensus at $104M. Given that there were not any material changes to the fee structure in the quarter, the firm was surprised that more remuneration did not flow to the creator base, although management described it as a timing issue. As long as bookings continue to beat whispers and profits live up to the hype the shares should work, Wedbush says. The firm expects the shares to come under pressure should Roblox not meet key metrics expectations.