16 Analysts Have This To Say About Roblox

16 analysts have expressed a variety of opinions on Roblox RBLX over the past quarter, offering a diverse set of opinions from bullish to bearish.

The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.

Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $44.62, a high estimate of $55.00, and a low estimate of $26.00. This current average reflects an increase of 26.4% from the previous average price target of $35.30.

Analyzing Analyst Ratings: A Detailed Breakdown

The standing of Roblox among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Roblox. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Unveiling insights, analysts deliver qualitative insights into stock performance, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Roblox compared to the broader market.
• Price Targets: Analysts navigate through adjustments in price targets, providing estimates for Roblox's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.

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.

Unveiling the Story Behind Roblox

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: Delving into Financials

Market Capitalization Analysis: The company's market capitalization surpasses industry averages, showcasing a dominant size relative to peers and suggesting a strong market position.

Positive Revenue Trend: Examining Roblox's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 37.77% as of 30 September, 2023, showcasing a substantial increase in 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 is impressive, surpassing industry averages. With a net margin of -38.86%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Roblox's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of -188.36%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): Roblox's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of -4.88%, the company may face hurdles in achieving optimal financial 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.

Analyst Ratings: What Are They?

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

This article was generated by Benzinga's automated content engine and reviewed by an editor.