JPMorgan analyst Cory Carpenter upgraded Roblox to Overweight from Neutral with a price target of $48, up from $41. Despite addressing concerns about its ability to better monetize users and age up, with 20% bookings growth each of the past four quarters and management committing to 100-300 basis orients of annual margin expansion over the next 3-5 years, investors remain skeptical around Roblox’s execution and third-party data has been mixed in recent months, the analyst tells investors in a research note. The firm thinks this presents a compelling entry point for a company growing bookings 20%, exiting a heavy investment cycle, and ramping two new revenue streams in advertising commerce in the second half of 2024. JPMorgan believes Roblox has a significant monetization opportunity.
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