Roblox Corporation (NYSE:RBLX) shares are trading higher on Tuesday after multiple analysts raised their price targets on the stock, with Raymond James boosting its target to $165 from $155.
What Happened: Raymond James analyst Andrew Marok raised his price target on Roblox to $165 while reiterating an Outperform rating ahead of the company’s third-quarter earnings report on Oct. 30.
Marok cited explosive growth from viral experiences like “Grow A Garden” continuing to accelerate in the third quarter, with multiple new experiences gaining significant audience traction. The analyst’s proprietary “bookings per hour” framework suggests bookings growth could reach approximately 76% year-over-year for the quarter.
The framework, which captured more upside in the second quarter compared to traditional metrics, points to time spent on the platform growing 96% year-over-year in the third quarter based on Sensor Tower data. While the second-quarter analysis suggested 62% bookings growth versus the actual 51% reported, it proved more accurate than consensus estimates of 29%.
“Our analysis points to another quarter where the data indicates strength well above expectations,” Marok said.
Raymond James raised its third-quarter bookings estimate by 12% and fourth-quarter estimate by 13% to account for recent data strength. The firm’s $165 price target is based on 15 times its 2026 enterprise value-to-bookings estimate.
The bullish outlook comes despite potential headwinds, including a shift from high-monetizing genres like simulation games to lower-monetizing genres like survival games, and possible back-to-school compression effects on engagement.
Providing a diverse range of perspectives, 24 analysts have published ratings on Roblox in the last three months. The current average price target stands at $152.62, representing a 23.58% increase from the previous average of $123.50.
Jefferies analyst James Heaney maintained Roblox with a Hold rating on Tuesday and raised the price target to $130 from $126. Other recent analyst changes include price target increases from Piper Sandler (raised to $180), BofA Securities (raised to $171) and Morgan Stanley (raised to $170).
RBLX Price Action: Roblox shares are up 4.28% at $133.73 on Tuesday at the time of publication, per Benzinga Pro.
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