A Glimpse Into The Expert Outlook On Roblox Through 21 Analysts

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Roblox RBLX underwent analysis by 21 analysts in the last quarter, revealing a spectrum of viewpoints from bullish to bearish.

The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 9 10 2 0 0
Last 30D 0 1 0 0 0
1M Ago 1 0 0 0 0
2M Ago 1 0 0 0 0
3M Ago 7 9 2 0 0

Analysts have recently evaluated Roblox and provided 12-month price targets. The average target is $58.95, accompanied by a high estimate of $72.00 and a low estimate of $49.00. Observing a 17.66% increase, the current average has risen from the previous average price target of $50.10.

price target chart

Investigating Analyst Ratings: An Elaborate Study

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
Cory Carpenter JP Morgan Raises Overweight $72.00 $62.00
Mohammed Khallouf HSBC Announces Buy $63.00 -
Andrew Marok Raymond James Maintains Strong Buy $60.00 $60.00
Jason Bazinet Citigroup Raises Buy $63.00 $53.00
Benjamin Black Deutsche Bank Raises Buy $60.00 $45.00
Matthew Cost Morgan Stanley Raises Overweight $65.00 $38.00
Ken Gawrelski Wells Fargo Raises Overweight $58.00 $54.00
Ross Sandler Barclays Raises Equal-Weight $50.00 $40.00
Thomas Champion Piper Sandler Raises Overweight $65.00 $54.00
Eric Sheridan Goldman Sachs Raises Neutral $55.00 $45.00
Brian Pitz BMO Capital Raises Outperform $62.00 $56.00
Aaron Lee Macquarie Raises Outperform $58.00 $50.00
Mike Hickey Benchmark Raises Buy $60.00 $44.00
Cory Carpenter JP Morgan Raises Overweight $62.00 $51.00
Jason Tilchen Canaccord Genuity Raises Buy $60.00 $50.00
Clark Lampen BTIG Raises Buy $56.00 $51.00
Bernie McTernan Needham Raises Buy $60.00 $50.00
Andrew Marok Raymond James Raises Strong Buy $60.00 $51.00
Nick McKay Wedbush Maintains Outperform $49.00 $49.00
Nick McKay Wedbush Maintains Outperform $49.00 $49.00
Cory Carpenter JP Morgan Raises Overweight $51.00 $50.00

Key Insights:

  • Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Roblox. This information provides a snapshot of how analysts perceive the current state of the company.
  • Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Roblox compared to the broader market.
  • Price Targets: Analysts predict movements in price targets, offering estimates for Roblox's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.

Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of Roblox's market position. Stay informed and make well-informed decisions with our Ratings Table.

Stay up to date on Roblox analyst ratings.

All You Need to Know About Roblox

Roblox operates an online video game platform with 80 million daily active users that lets young gamers create, develop, and monetize games (or "experiences") for other players. The firm 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 $3.5 billion in bookings in 2023 through in-game purchases and advertising 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 than creating new games or franchises.

Understanding the Numbers: Roblox's Finances

Market Capitalization Highlights: Above the industry average, the company's market capitalization signifies a significant scale, indicating strong confidence and market prominence.

Positive Revenue Trend: Examining Roblox's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 28.84% as of 30 September, 2024, showcasing a substantial increase in top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Communication Services sector.

Net Margin: Roblox's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of -26.04%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Roblox's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of -153.7%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): Roblox's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of -3.64%, the company may face hurdles in achieving optimal financial returns.

Debt Management: Roblox's debt-to-equity ratio stands notably higher than the industry average, reaching 9.26. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

Analyst Ratings: What Are They?

Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

Which Stocks Are Analysts Recommending Now?

Benzinga Edge gives you instant access to all major analyst upgrades, downgrades, and price targets. Sort by accuracy, upside potential, and more. Click here to stay ahead of the market.

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

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