Oppenheimer reiterates Outperform rating on Roblox stock after developer conference

Investing.com - Oppenheimer maintained its Outperform rating and $158.00 price target on Roblox Corp. (NYSE:RBLX) following the Roblox Developers Conference (RDC) held last week in San Jose, California. The target represents potential upside from the current price of $127.69, though InvestingPro analysis suggests the stock is trading above its Fair Value.

The investment firm reported an "incrementally positive" outlook on Roblox’s long-term growth opportunities in interactive entertainment and advertising after attending the conference and meeting with company management, developers, studio investors, creative agencies, and marketing solution providers. This optimism is supported by the company’s impressive 27.4% revenue growth over the last twelve months and remarkable 123% stock price gain over the past six months.

Oppenheimer believes Roblox is "well positioned" to leverage new technology and product innovation to gain market share in the video game industry and build a substantial advertising business over the longer term.

The firm noted that Roblox’s advertising strategy encompasses both brand and programmatic advertising approaches, potentially creating a significant new revenue stream for the company.

Despite the positive long-term outlook, Oppenheimer identified near-term challenges including "incremental concentration risk" and advertising revenue that will make an "immaterial" contribution to bookings growth in the immediate future.

In other recent news, Roblox Corporation has seen a series of developments that may interest investors. BofA Securities raised its price target for Roblox to $171 from $159, maintaining a Buy rating, following announcements at the Roblox Developer Conference. At the event, CEO Dave Baszucki noted an increase in the company’s DevEx rate to approximately 23.4%, up from 21.6% over the last twelve months. Needham also reiterated its Buy rating and $159 price target, highlighting the launch of "Moments," which could enhance user engagement and in-app purchases.

Additionally, Roblox announced a partnership with the International Age Rating Coalition to implement a global content rating system, replacing its existing labels with region-specific ratings. BMO Capital reiterated its Outperform rating and set a $150 price target, citing strong user growth, with average daily peak concurrent users up 123% year-over-year in the third quarter. Oppenheimer also maintained its Outperform rating with a $158 price target, following an investor meeting with prominent game streamer KreekCraft. These recent developments underscore Roblox’s strategic initiatives and continued growth in user engagement.

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