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On Friday, Goldman Sachs analyst Eric Sheridan updated the firm’s stance on Roblox Corp . (NYSE:RBLX), increasing the price target to $63 from the previous $55, while maintaining a Neutral rating on the shares. The adjustment follows Roblox’s Q4 2024 earnings report, which revealed several key points about the company’s performance and outlook. According to InvestingPro data, Roblox’s current market capitalization stands at $44.73 billion, with analyst targets ranging from $30 to $83. The stock appears fairly valued based on InvestingPro’s proprietary Fair Value model.
Roblox management highlighted solid monetization and engagement trends, although daily active users (DAUs) fell short of expectations. This shortfall was attributed to the high base effect of the PlayStation launch in Q4 2023 and the first full quarter after exiting the Turkish market. Additionally, the company provided insights into its bookings growth trajectory for 2025, anticipating higher growth rates in the first half of the year compared to the second half. InvestingPro data shows impressive revenue growth of 28.68% over the last twelve months, with analysts anticipating continued sales growth in the current year.
Despite plans to increase headcount, Roblox has guided for an expansion in adjusted EBITDA margin of 100-300 basis points year-over-year. This expectation aligns with targets set during the company’s 2023 investor day and is primarily driven by operating leverage. There is also potential for upside from gross margin leverage in the longer term, although this is not factored into the 2025 guidance. InvestingPro subscribers can access detailed financial health metrics, with Roblox currently maintaining a favorable position with more cash than debt on its balance sheet. Get access to 10+ additional ProTips and comprehensive financial analysis through InvestingPro’s detailed research reports.
Sheridan noted that the Q4 2024 results and the forward guidance for the next quarter were in line with Goldman Sachs and FactSet estimates. However, the recent selloff in Roblox stock reflects high investor expectations leading up to the earnings release. Looking ahead, Goldman Sachs views Roblox as a company with a strong position in gaming and interactive entertainment, as well as a key player in the emerging metaverse and creator economy.
With the updated estimates based on the latest earnings report and management commentary, Goldman Sachs reaffirms its Neutral rating on Roblox and sets a new 12-month price target of $63.
In other recent news, Roblox Corp. has been the subject of several analyst reports. Raymond (NSE:RYMD) James maintained a Strong Buy rating on Roblox and increased its price target to $76, citing robust third-party user data and solid margin commentary as positive indicators. Canaccord Genuity also maintained a Buy rating and set a price target of $80, emphasizing Roblox’s investments in infrastructure and AI tools as growth drivers.
BTIG analyst Clark Lampen raised the price target for Roblox to $73 while maintaining a Buy rating, attributing the company’s strong December performance and early Q1 growth as reasons for confidence. Benchmark analyst Mike Hickey increased the price target for Roblox to $71, highlighting the company’s Q4 performance with $1.36 billion in bookings and $382 million in adjusted EBITDA.
Finally, BofA Securities increased its price target on Roblox to $79, keeping a Buy rating. The adjustment reflects a higher expected enterprise value to forecasted calendar year 2026 earnings before interest, taxes, depreciation, and amortization multiple. These are the latest developments for Roblox Corp., as reported by various financial analysts.
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