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Investing.com - Oppenheimer maintained its Outperform rating and $158.00 price target on Roblox Corp. (NYSE:RBLX) following analysis of the company’s third-quarter 2025 performance. The target represents potential upside from the current price of $129.24, with analyst targets ranging from $65 to $180.
The research firm described the quarter as a "milestone" for Roblox, with new games including GAG, SAB, and 99 Nights driving significant platform growth but creating volatility in player engagement metrics. According to InvestingPro data, the company’s market capitalization has reached $89.6B, supported by impressive year-to-date returns of 129.73%.
Oppenheimer noted that concurrent user (CCU) data has become an unreliable predictor for bookings forecasts due to volatile engagement patterns and data sampling issues, leading the firm to utilize alternative data sources for its analysis.
The firm’s research revealed that CCU trends have masked revenue declines in key games such as SAB, while also highlighting negative impacts from users shifting from highly monetized games like GAG and SAB to less monetized options such as 99 Nights.
Despite these mix shifts, Oppenheimer’s updated third-quarter bookings estimate for Roblox projects 53% year-over-year growth, aligning with InvestingPro’s forecast of 68% revenue growth for the fiscal year 2025.
In other recent news, Roblox Corp. is facing significant challenges as the Florida Attorney General has issued criminal subpoenas against the company. The Attorney General accused Roblox of failing to protect children from harm, describing the platform as a "breeding ground for predators." Additionally, Iraq has imposed a nationwide ban on Roblox, citing concerns over child safety and the potential for exploitation and cyber-extortion. Despite these legal and regulatory challenges, there have been notable developments in analyst ratings for Roblox. Jefferies raised its price target for Roblox to $130, highlighting strong bookings growth, although they maintained a Hold rating. MoffettNathanson upgraded the stock from Sell to Neutral, attributing the change to viral growth in user engagement metrics. Conversely, TD Cowen reiterated a Sell rating, despite acknowledging strong engagement data and suggesting its current bookings estimates might be conservative. These mixed analyst opinions reflect ongoing debates about Roblox’s growth potential amid its current controversies.
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