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Expert Ratings For Roblox

Author: Benzinga Insights | July 08, 2024 04:01pm

Analysts' ratings for Roblox (NYSE:RBLX) over the last quarter vary from bullish to bearish, as provided by 21 analysts.

The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.

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

The 12-month price targets, analyzed by analysts, offer insights with an average target of $42.76, a high estimate of $56.00, and a low estimate of $26.00. Highlighting a 13.11% decrease, the current average has fallen from the previous average price target of $49.21.

price target chart

Analyzing Analyst Ratings: A Detailed Breakdown

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 $43.00 $41.00
Aaron Lee Macquarie Announces Outperform $46.00 -
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 $50.00
Cory Carpenter JP Morgan Raises Overweight $48.00 $41.00
Drew Crum Stifel Maintains Buy $53.00 -

Key Insights:

  • Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Roblox. This insight gives a snapshot of analysts' perspectives on the current state of the company.
  • Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey 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.

Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of Roblox's market standing. Stay informed and make data-driven decisions with our Ratings Table.

Stay up to date on Roblox analyst ratings.

Unveiling the Story Behind Roblox

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.

Key Indicators: Roblox's Financial Health

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 its peers, the company achieved a growth rate higher than the average among peers in 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 -33.77%, the company may encounter challenges in effective cost control.

Return on Equity (ROE): Roblox's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of -365.95%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): Roblox's ROA stands out, surpassing industry averages. With an impressive ROA of -4.34%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: With a high debt-to-equity ratio of 25.45, Roblox faces challenges in effectively managing its debt levels, indicating potential financial strain.

The Core of Analyst Ratings: What Every Investor Should Know

Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

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

Posted In: RBLX

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