Benchmark maintains Roblox stock Buy rating ahead of Q2 earnings

Investing.com - Benchmark maintained its Buy rating and $77.00 price target on Roblox Corp . (NYSE:RBLX) ahead of the company’s upcoming second-quarter earnings report. According to InvestingPro data, the stock is currently trading above its Fair Value, with analyst targets ranging from $45 to $152 per share.

Roblox will report its Q2 2025 financial results before U.S. markets open on Thursday, July 31, followed by a conference call at 8:30 am ET to discuss the results.

The gaming platform’s shares have surged more than 75% since its Q1 earnings report, recently reaching a three-year high of $128 before consolidating near $121, reflecting strengthened investor confidence in the platform’s fundamentals and game performance.

Benchmark expects Q2 results to exceed consensus estimates based on its tracking of recent platform engagement and title-level success, including record-setting hits like Grow a Garden, despite maintaining its current $77 price target.

The research firm anticipates management will significantly raise full-year guidance based on underlying strength in user activity, developer monetization, and expanding revenue channels, while also noting Roblox is positioned to unlock significant advertising opportunities.

In other recent news, Roblox Corporation has seen a flurry of activity with notable developments. BMO Capital has increased its price target for Roblox to $135, highlighting the success of the "Grow a Garden" experience, which reached a record 21.9 million concurrent users. Oppenheimer also maintained its price target at $125, citing potential upside in future bookings from the same game. The firm believes that many investors have underestimated the game’s momentum and its potential impact on future financial results.

Additionally, Roblox has introduced a new suite of safety tools aimed at teenagers, including "Trusted Connections," which allows users aged 13 and older to chat with verified friends without filters. This feature requires an age verification process using video selfie technology. In another strategic move, Roblox has launched a licensing platform in partnership with major brands like Netflix (NASDAQ:NFLX), Lionsgate, and Sega, aiming to create new experiences based on popular franchises.

These recent developments signal Roblox’s efforts to enhance user engagement and expand its platform capabilities.

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