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On Friday, Oppenheimer affirmed a Perform rating for Roblox Corporation (NYSE:RBLX), a company whose stock has surged 85.52% over the past six months and currently commands a market capitalization of $44.73 billion. The company delivered a robust fourth quarter in 2024, surpassing expectations in terms of bookings and profit. According to InvestingPro data, the stock is currently trading near its Fair Value. Roblox reported a 19% year-over-year increase in daily active users (DAU), reaching 85.3 million, with notable surges in Japan and India where growth exceeded 50% year-over-year. Despite fourth-quarter DAU growth not meeting analysts’ forecasts, management highlighted that growth in December and January was significantly higher than the quarterly average.
The growth was particularly pronounced on mobile and desktop platforms, where DAU expanded by 26% year-over-year. The company’s bookings rose by 21% to $1.36 billion, contributing to an impressive revenue growth of 28.68% over the last twelve months. Additionally, Roblox’s free cash flow experienced a substantial increase, jumping 54% to $120 million. This improvement was attributed to enhanced monetization efforts and operational efficiency, with InvestingPro highlighting that the company maintains a strong balance sheet with more cash than debt.
Management expressed confidence in the company’s ability to increase operating expenses while still achieving long-term margin expansion goals, which are projected at 100 to 300 basis points per year. While Oppenheimer sees a more predictable path for margin expansion in 2025, the firm expressed uncertainty regarding the trajectory of user growth. Despite the strong financial performance, Oppenheimer’s stance remains unchanged as they reiterated their Perform rating for Roblox. Analyst targets range from $30 to $83 per share, with additional insights and financial metrics available through InvestingPro’s comprehensive research reports.
In other recent news, Roblox Corp . has been the focus of several analyst upgrades following its Q4 2024 earnings report. Goldman Sachs analyst Eric Sheridan raised the firm’s price target for Roblox to $63 while maintaining a neutral rating, citing solid monetization and engagement trends despite a shortfall in daily active users. Similarly, Raymond (NSE:RYMD) James increased its price target for Roblox to $76, maintaining a strong buy rating due to encouraging January trends and solid margin commentary.
Meanwhile, Canaccord Genuity held its buy rating with an $80 price target, expressing optimism for Roblox’s growth prospects despite mixed Q4 performance. BTIG analyst Clark Lampen adjusted Roblox’s price target to $73, maintaining a buy rating and expressing confidence in the company’s Q1 2025 outlook. Lastly, Benchmark analyst Mike Hickey raised the price target for Roblox to $71, citing the company’s impressive Q4 performance and ambitious 2025 guidance.
These are recent developments that highlight the overall positive outlook for Roblox from various analyst firms. The company’s strong performance and future growth prospects have been emphasized in these assessments. Investors should note that these updates reflect the analysts’ views and not the current stock price or future performance.
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