13 Analysts Have This To Say About Roblox

Providing a diverse range of perspectives from bullish to bearish, 13 analysts have published ratings on Roblox RBLX in the last three months.

The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective.

The 12-month price targets, analyzed by analysts, offer insights with an average target of $70.31, a high estimate of $82.00, and a low estimate of $46.00. Marking an increase of 11.75%, the current average surpasses the previous average price target of $62.92.

Investigating Analyst Ratings: An Elaborate Study

The perception of Roblox by financial experts is analyzed through recent analyst actions. 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 | |--------------------|--------------------|---------------|---------------|--------------------|--------------------| |Martin Yang |Oppenheimer |Maintains |Outperform | $70.00|$70.00 | |Ken Gawrelski |Wells Fargo |Lowers |Overweight | $70.00|$76.00 | |Mike Hickey |Benchmark |Maintains |Buy | $71.00|$71.00 | |Ross Sandler |Barclays |Lowers |Equal-Weight | $46.00|$50.00 | |Aaron Lee |Macquarie |Raises |Outperform | $76.00|$71.00 | |Mike Hickey |Benchmark |Raises |Buy | $71.00|$60.00 | |Bernie McTernan |Needham |Raises |Buy | $72.00|$60.00 | |Eric Sheridan |Goldman Sachs |Raises |Neutral | $63.00|$55.00 | |Jason Bazinet |Citigroup |Raises |Buy | $82.00|$63.00 | |Thomas Champion |Piper Sandler |Raises |Overweight | $72.00|$65.00 | |Eric Handler |Roth MKM |Raises |Neutral | $70.00|$54.00 | |Ken Gawrelski |Wells Fargo |Raises |Overweight | $76.00|$58.00 | |Matthew Cost |Morgan Stanley |Raises |Overweight | $75.00|$65.00 |

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: 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: Gaining insights, analysts provide estimates for the future value of Roblox's stock. This comparison reveals trends in analysts' expectations over time.

For valuable insights into Roblox's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.

Stay up to date on Roblox analyst ratings.

Unveiling the Story Behind Roblox

Roblox operates a free-to-play online video game platform with about 85 million daily active users. This platform has spawned a virtual universe and a Roblox economy based on the Robux currency. The platform houses millions of games from a wide range of creators spanning from young gamers themselves to professional development studios. Roblox offers creators the tools, publishing abilities, and platform for their games, enabling anyone to create a game. Creators earn money when gamers make optional in-game purchases within their games and by offering space for real-world advertising, and Roblox earns revenue primarily by taking a cut of these earnings.

Understanding the Numbers: Roblox's Finances

Market Capitalization Analysis: Above industry benchmarks, the company's market capitalization emphasizes a noteworthy size, indicative of a strong market presence.

Revenue Growth: Over the 3M period, Roblox showcased positive performance, achieving a revenue growth rate of 31.77% as of 31 December, 2024. This reflects a substantial increase in the company's top-line earnings. When compared to others in the Communication Services sector, the company excelled with a growth rate higher than the average among peers.

Net Margin: Roblox's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of -22.22%, 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 -106.76%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of -3.17%, the company may need to address challenges in generating satisfactory returns from its assets.

Debt Management: Roblox's debt-to-equity ratio is notably higher than the industry average. With a ratio of 8.15, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

Analyst Ratings: Simplified

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.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

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