Throughout the last three months, 15 analysts have evaluated Roblox RBLX, offering a diverse set of opinions from bullish to bearish.
Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 7 | 5 | 1 | 0 | 2 |
| Last 30D | 0 | 1 | 0 | 0 | 0 |
| 1M Ago | 0 | 1 | 0 | 0 | 0 |
| 2M Ago | 1 | 1 | 1 | 0 | 2 |
| 3M Ago | 6 | 2 | 0 | 0 | 0 |
Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $44.0, with a high estimate of $55.00 and a low estimate of $26.00. Witnessing a positive shift, the current average has risen by 18.06% from the previous average price target of $37.27.
Analyzing Analyst Ratings: A Detailed Breakdown
The analysis of recent analyst actions sheds light on the perception of Roblox by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Brian Pitz | BMO Capital | Announces | Outperform | $55.00 | - |
| Ken Gawrelski | Wells Fargo | Announces | Overweight | $49.00 | - |
| Kevin Kumar | Goldman Sachs | Raises | Sell | $26.00 | $23.00 |
| Mike Hickey | Benchmark | Maintains | Buy | $46.00 | - |
| Thomas Champion | Piper Sandler | Raises | Overweight | $52.00 | $50.00 |
| Alexia Quadrani | JP Morgan | Raises | Neutral | $37.00 | $33.00 |
| Kevin Kumar | Goldman Sachs | Raises | Sell | $26.00 | $23.00 |
| Thomas Champion | Piper Sandler | Raises | Overweight | $50.00 | $45.00 |
| Mike Hickey | Benchmark | Raises | Buy | $46.00 | $35.00 |
| Nick McKay | Wedbush | Raises | Outperform | $49.00 | $37.00 |
| Andrew Marok | Raymond James | Raises | Strong Buy | $47.00 | $41.00 |
| Bernie McTernan | Needham | Raises | Buy | $51.00 | $40.00 |
| Matthew Thornton | Truist Securities | Raises | Buy | $37.00 | $35.00 |
| Andrew Marok | Raymond James | Announces | Strong Buy | $41.00 | - |
| Eric Handler | Roth MKM | Maintains | Buy | $48.00 | $48.00 |
Key Insights:
- Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Roblox. This insight gives a snapshot of analysts' perspectives on the current state of the company.
- Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Roblox compared to the broader market.
- Price Targets: Analysts set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.
Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of Roblox's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.
Stay up to date on Roblox analyst ratings.
Get to Know Roblox Better
Roblox operates an online video game platform that lets young gamers create, develop, and monetize games (or "experiences") for other players. The firm effectively offers its developers a hybrid of a game engine, publishing platform, online hosting and services, marketplace with payment processing, and social network. The platform is a closed garden that Roblox controls, earning revenue in multiple places while benefiting from outsourced game development. Unlike traditional video game publishers, Roblox is more focused on the creation of new tools and monetization techniques for its developers then creating new games or franchises.
Roblox: Financial Performance Dissected
Market Capitalization Analysis: The company's market capitalization surpasses industry averages, showcasing a dominant size relative to peers and suggesting a strong market position.
Revenue Growth: Roblox displayed positive results in 3 months. As of 30 September, 2023, the company achieved a solid revenue growth rate of approximately 37.77%. This indicates a notable increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Communication Services sector.
Net Margin: Roblox's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive -38.86% net margin, the company effectively manages costs and achieves strong profitability.
Return on Equity (ROE): Roblox's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of -188.36%, the company may face hurdles in generating optimal returns for shareholders.
Return on Assets (ROA): Roblox's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive -4.88% ROA, the company effectively utilizes its assets for optimal returns.
Debt Management: Roblox's debt-to-equity ratio is notably higher than the industry average. With a ratio of 13.8, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.
How Are Analyst Ratings Determined?
Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.
Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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