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On Thursday, BofA Securities analysts adjusted their outlook on Roblox Corp . (NYSE: NYSE:RBLX) by raising the company’s price target to $103 from $86, while maintaining a Buy rating. The decision comes after hosting Roblox’s CFO at the BofA Tech Conference earlier this week. The stock, currently trading near its 52-week high of $91.68, has delivered an impressive 155.81% return over the past year. According to InvestingPro analysis, the stock appears to be trading above its Fair Value.
The analysts indicated that Roblox’s core business is expected to sustain over 20% year-over-year growth through 2027, building on its current momentum of 30.24% revenue growth in the last twelve months. They also noted the company’s increased confidence in investing aggressively for growth over the next 18 months. Furthermore, second-quarter results for 2025 are anticipated to significantly surpass guidance, and the third-quarter deceleration should be more favorable than previously expected. InvestingPro subscribers can access 14 additional key insights about Roblox’s growth prospects and financial health.
Despite these positive projections, the analysts mentioned that ad revenues for Roblox are not expected to be material. They foresee talent and capital flowing into the Roblox ecosystem at a faster pace compared to mobile app and console games in the foreseeable future.
The analysts highlighted that a series of strong results and a rally in share prices have sparked interest among new long-term growth investors. The price target increase is based on a 42x EV/CY26E EBITDA multiple, up from a previous 34x, reflecting a 3x premium over high-growth software stocks, due to expectations that Roblox’s EBITDA will outpace consensus estimates for this category.
In other recent news, Roblox Corp has completed its reincorporation from Delaware to Nevada, a move approved by stockholders during the company’s annual meeting. This transition, effective as of May 30, 2025, does not affect the company’s business operations or financial obligations but aligns its corporate governance with Nevada state laws. Concurrently, BMO Capital Markets has raised its price target for Roblox to $95, citing strong daily active user growth and increased engagement from a new game, "Grow a Garden." BMO’s revised financial forecasts include a 2.9% increase in second-quarter bookings, suggesting the company could surpass its guidance.
On a different note, TD Cowen maintains a Sell rating on Roblox, with a $40 target, expressing concerns over the company’s Q2 performance and potential challenges in year-over-year comparisons. Meanwhile, Deutsche Bank (ETR:DBKGn) reaffirms its Buy rating with a $78 target, following Roblox’s new partnership with Google (NASDAQ:GOOGL) to introduce Rewarded Video Ads, which could significantly boost advertising revenue. Lastly, Goldman Sachs has increased its price target for Roblox to $80, maintaining a Neutral rating, and anticipates a 22% compound annual growth rate in Bookings from 2024 to 2027. These developments reflect a range of perspectives on Roblox’s financial outlook and strategic initiatives.
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