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On Tuesday, Goldman Sachs adjusted its financial outlook on Roblox Corp . (NYSE: NYSE:RBLX), increasing the price target to $80.00 from the previous $63.00 while maintaining a Neutral rating on the stock. The revision follows Roblox’s first-quarter earnings report for 2025, which prompted a reevaluation of the company’s medium-to-long-term business model drivers. The stock, currently trading at $77.02, has shown remarkable momentum with a 137% return over the past year, according to InvestingPro data.
According to Goldman Sachs, there is a strong possibility that Roblox will continue to achieve and potentially exceed a 20% growth rate in forward Bookings. This assessment is supported by a comprehensive analysis, including an examination of broader industry trends and monetization strategies, which was presented in a separate report. InvestingPro data reveals that analysts expect significant sales growth, with revenue forecast to grow 49% in FY2025, though the company remains unprofitable with negative earnings per share of $1.34.
Goldman Sachs’ updated financial projections indicate a compound annual growth rate (CAGR) of 22% for Roblox’s Bookings from 2024 to 2027. Additionally, the firm anticipates an improvement in the company’s adjusted EBITDA margin, projecting an increase from 18% in 2024 to 25% by 2027.
The analyst at Goldman Sachs commented on the findings, stating, "Based on this work, we see a high likelihood that Roblox will maintain and compound forward Bookings growth at 20%+. These updated forecasts cause us to increase our 12-month PT from $63 to $80 and we reiterate our Neutral rating on the shares from current levels based on risk/reward skew."
The updated price target reflects the potential for Roblox to capitalize on its growth strategies and expanded margins over the next few years. The Neutral rating suggests that while there may be positive developments in the company’s performance, the current market risks and rewards are balanced at the stock’s present valuation.
In other recent news, Roblox Corporation has reported a notable first-quarter performance, showing a 31% increase in revenue and a 26% rise in daily active users. This strong performance has led to an upward revision in the company’s 2025 revenue forecast, now ranging from $5,285 million to $5,360 million. Analysts have responded positively, with Macquarie raising its price target for Roblox to $80, citing the company’s ability to thrive in a challenging macroeconomic environment. Similarly, Canaccord Genuity increased its price target to $84, maintaining a Buy rating, and noted the company’s strategic enhancements and margin expansion. Jefferies also raised its price target to $70, maintaining a Hold rating, while acknowledging Roblox’s broad-based improvements across its platform. Meanwhile, Goldman Sachs maintained a Neutral rating with a steady price target of $63, recognizing the company’s positive indicators for long-term engagement and monetization. Needham raised its price target to $79, maintaining a Buy rating, and highlighted the company’s conservative full-year guidance as a realistic target. Overall, these developments reflect Roblox’s strong financial results and strategic initiatives, which have garnered favorable responses from several analyst firms.
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