Benchmark raises Roblox stock price target to $71 from $60

On Friday, Benchmark analysts adjusted their outlook on Roblox Corp . (NYSE:RBLX), increasing the price target to $71.00, up from the previous target of $60.00. The firm maintained a Buy rating on the stock, signaling confidence in the company’s performance. According to InvestingPro data, Roblox has demonstrated remarkable momentum with an 85.5% price return over the past six months, though current analysis suggests the stock is trading near its Fair Value.

Roblox’s December exit growth demonstrated resilience, with a notable increase in mobile and desktop bookings by 27%. Additionally, prepaid and console bookings saw a healthy rise of 22%. The company’s financial performance throughout FY 2024 was solid, with bookings growing by 23.5% and Adjusted EBITDA (AEBITDA) margin experiencing an expansion of over 600 basis points. This growth aligns with the company’s strong revenue performance, which InvestingPro data shows reached $3.6 billion in the last twelve months, representing a 28.7% year-over-year increase.

The Q1 2025 bookings guidance takes into account the robust early-quarter momentum. However, it also considers a challenging year-over-year comparison, as Easter will occur in Q2 this year, unlike Q1 in 2024. Despite this, Roblox management has set ambitious targets for 2025, aiming for 20% growth in bookings and approximately 150 basis points of margin expansion.

Benchmark analysts also highlighted the potential for bookings growth to surpass user and hour engagement growth in fiscal 2025. This is attributed to the ongoing success of Roblox’s monetization initiatives. The analysts expressed a strong belief in the company’s long-term secular growth strategy and recommended buying the stock on pullbacks, which they deemed as current market opportunities.

In other recent news, Roblox Corporation has been the subject of several recent analyst reports. Needham raised the price target for Roblox from $60 to $72, maintaining a Buy rating, despite a slowdown in bookings growth. This adjustment reflects confidence in the company’s long-term growth trajectory.

Oppenheimer maintained a Perform rating for Roblox following a robust Q4 2024, which saw the company surpass expectations in terms of bookings and profit. The company’s bookings rose by 21% to $1.36 billion, and daily active users increased by 19%, reaching 85.3 million.

Goldman Sachs increased the price target for Roblox to $63, maintaining a Neutral rating. This adjustment followed Roblox’s Q4 2024 earnings report, which highlighted solid monetization and engagement trends.

Raymond (NSE:RYMD) James maintained a Strong Buy rating and increased its price target to $76, expressing confidence in the fundamental drivers of Roblox’s story.

Lastly, Canaccord Genuity maintained their Buy rating and $80.00 price target on Roblox, expressing optimism about the company’s growth prospects despite mixed Q4 performance. These are the recent developments for Roblox Corporation.

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