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Deep Dive Into Roblox Stock: Analyst Perspectives (19 Ratings)

Author: Benzinga Insights | June 13, 2024 12:00pm

19 analysts have shared their evaluations of Roblox (NYSE:RBLX) during the recent three months, expressing a mix of bullish and bearish perspectives.

In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 8 6 5 0 0
Last 30D 0 1 0 0 0
1M Ago 0 0 1 0 0
2M Ago 8 5 4 0 0
3M Ago 0 0 0 0 0

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $42.58, along with a high estimate of $56.00 and a low estimate of $26.00. A decline of 14.24% from the prior average price target is evident in the current average.

price target chart

Exploring Analyst Ratings: An In-Depth Overview

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
Ken Gawrelski Wells Fargo Raises Overweight $41.00 $37.00
Eric Handler Roth MKM Lowers Neutral $35.00 $55.00
Eric Sheridan Goldman Sachs Lowers Neutral $38.00 $48.00
Brian Pitz BMO Capital Lowers Outperform $56.00 $57.00
Ross Sandler Barclays Lowers Equal-Weight $35.00 $46.00
Jason Tilchen Canaccord Genuity Lowers Buy $48.00 $56.00
Clark Lampen BTIG Lowers Buy $46.00 $54.00
Clay Griffin MoffettNathanson Lowers Neutral $26.00 $31.00
Benjamin Black Deutsche Bank Lowers Buy $40.00 $55.00
Ken Gawrelski Wells Fargo Lowers Overweight $37.00 $50.00
Matthew Cost Morgan Stanley Lowers Equal-Weight $35.00 $42.00
Mike Hickey Benchmark Lowers Buy $40.00 $50.00
Nick McKay Wedbush Lowers Outperform $46.00 $56.00
Thomas Champion Piper Sandler Lowers Overweight $40.00 $56.00
Bernie McTernan Needham Lowers Buy $40.00 $55.00
Eric Handler Roth MKM Maintains Buy $55.00 $55.00
Mike Hickey Benchmark Maintains Buy $50.00 -
Cory Carpenter JP Morgan Raises Overweight $48.00 $41.00
Drew Crum Stifel Maintains Buy $53.00 -

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 unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into expectations for the relative performance of Roblox compared to the broader market.
  • Price Targets: Understanding forecasts, analysts offer estimates for Roblox's future value. Examining the current and prior targets provides insight into analysts' changing expectations.

Capture valuable insights into Roblox's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with our Ratings Table.

Stay up to date on Roblox analyst ratings.

Delving into Roblox's Background

Roblox operates an online video game platform that lets young gamers create, develop, and monetize games (or "experiences") for other players. The firm effectively 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 revenue in multiple places 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 then creating new games or franchises.

Financial Milestones: Roblox's Journey

Market Capitalization Analysis: The company's market capitalization is above the industry average, indicating that it is relatively larger in size compared to peers. This may suggest a higher level of investor confidence and market recognition.

Revenue Growth: Roblox's revenue growth over a period of 3 months has been noteworthy. As of 31 March, 2024, the company achieved a revenue growth rate of approximately 22.27%. This indicates a substantial 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 falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of -33.77%, the company may face hurdles in effective cost management.

Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of -365.95%, the company may need to address challenges in generating satisfactory returns for shareholders.

Return on Assets (ROA): Roblox's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of -4.34%, the company showcases efficient use of assets and strong financial health.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 25.45, caution is advised due to increased financial risk.

What Are Analyst Ratings?

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.

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

Posted In: RBLX