Roblox Stock Rises as Wedbush Reiterates Outperform Rating, $165 Target

Roblox Corporation RBLX shares are trading higher Monday after Wedbush reiterated its Outperform rating and a $165 price target, describing the stock as one of the strongest growth opportunities in the gaming sector despite ongoing controversies and legal challenges tied to child safety on the platform.

The firm acknowledged that negative press and lawsuits could bring volatility but emphasized management's swift responses to safety concerns, including new tools for parental oversight, age estimation, and AI-driven content monitoring. Roblox has recently open-sourced its AI tool, Roblox Sentinel, to help developers combat child predation, and introduced new privacy features in July and August. Wedbush said these measures support the company's long-term trust and safety efforts, which it considers critical to the platform's success.

On the growth side, analysts highlighted momentum from viral games such as Grow a Garden and Steal a Brainrot, continue to drive engagement. Wedbush noted that Roblox's third-quarter guidance for 41–45% year-over-year bookings growth reflects a strengthening flywheel effect, with more games going viral compared to the prior quarter. The report also pointed to growing advertising potential and improving operating leverage as the platform scales, with revenue per engineer expected to rise alongside AI-driven discovery and infrastructure upgrades.

The analysts plan to attend the upcoming Roblox Developer Conference, running Sept. 4 to Sept. 6, where further updates on child safety initiatives and developer monetization strategies are expected.

RBLX Price Action: Roblox shares were up 5.96% at $124.52 at the time of writing, according to Benzinga pro.

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