21 Analysts Have This To Say About Roblox

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In the preceding three months, 21 analysts have released ratings for Roblox RBLX, presenting a wide array of perspectives 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 9 9 3 0 0
Last 30D 0 0 1 0 0
1M Ago 0 3 0 0 0
2M Ago 1 0 0 0 0
3M Ago 8 6 2 0 0

In the assessment of 12-month price targets, analysts unveil insights for Roblox, presenting an average target of $62.38, a high estimate of $76.00, and a low estimate of $50.00. Surpassing the previous average price target of $51.55, the current average has increased by 21.01%.

price target chart

Analyzing Analyst Ratings: A Detailed Breakdown

A comprehensive examination of how financial experts perceive Roblox is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
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
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

Key Insights:

  • Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Roblox. This information offers a snapshot of how analysts perceive the current state of the company.
  • Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of Roblox compared to the broader market.
  • Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of Roblox's stock. This comparison reveals trends in analysts' expectations over time.

To gain a panoramic view of Roblox's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using 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.

Key Indicators: Roblox's Financial Health

Market Capitalization: Boasting an elevated market capitalization, the company surpasses industry averages. This signals substantial size and strong market recognition.

Revenue Growth: Roblox displayed positive results in 3 months. As of 30 September, 2024, the company achieved a solid revenue growth rate of approximately 28.84%. 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 is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of -26.04%, the company may encounter challenges in effective cost control.

Return on Equity (ROE): Roblox's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of -153.7%, the company may face hurdles in achieving optimal financial returns.

Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of -3.64%, 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 9.26, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

What Are Analyst Ratings?

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 publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

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

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