Roblox price target raised to $45 from $35 at Roth MKM

Roth MKM analyst Eric Handler raised the firm’s price target on Roblox to $45 from $35 but keeps a Neutral rating on the shares. The firm is taking a more constructive view following the company’s better-than-expected Q4 results and strong January bookings. Roth MKM adds however that at valuation that is 8-times and 7-times expected bookings for 2023 and 2024 respectively, the stock’s valuation looks "expensive", particularly in light of Roblox’s ongoing EBITDA margin contraction and free cash flow likely remaining negative.