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On Thursday, Piper Sandler analysts increased the price target for Roblox Corp . (NYSE: NYSE:RBLX) stock to $105 from $85, maintaining an Overweight rating. The decision reflects confidence in the company’s long-term platform opportunities, driven by record usage and viral content. The stock has demonstrated remarkable momentum, surging over 155% in the past year and currently trading near its 52-week high of $91.68. According to InvestingPro, technical indicators suggest the stock is in overbought territory.
The analysts noted that the viral hit "Grow a Garden" is experiencing a record-setting usage pace, contributing to the positive outlook. Monthly visitor data suggests significant potential for growth in daily active users for the second quarter of 2025.
The analysts highlighted the company’s improvements in surfacing and promoting content, which are expected to drive future growth. They expressed optimism about the platform’s potential, fueled by investments in search, discovery, and developer tools.
Despite competitive challenges from platforms like UEFN, the analysts believe Roblox’s growth trajectory remains intact. They anticipate more hit games to emerge, further enhancing the platform’s appeal to users and developers alike. Discover 13 additional key insights about Roblox and access comprehensive valuation metrics with InvestingPro’s exclusive research report.
In other recent news, Roblox Corp has made several strategic and financial moves. The company successfully reincorporated from Delaware to Nevada, a transition approved by stockholders at their recent annual meeting. This change does not affect Roblox’s business operations or financial obligations but aligns with their strategic decisions. Analysts from BofA Securities and BMO Capital Markets have raised their price targets for Roblox, citing positive growth projections and robust daily active user growth. BofA increased its target to $103, while BMO raised it to $95, reflecting confidence in the company’s future performance.
Conversely, TD Cowen maintained a Sell rating with a $40 target, expressing skepticism about the company’s near-term growth prospects despite a projected 30% increase in Q2 bookings. Deutsche Bank (ETR:DBKGn) reiterated its Buy rating with a $78 target following the launch of Rewarded Video Ads in collaboration with Google (NASDAQ:GOOGL), estimating this could add $150 million to $300 million in advertising revenue by 2026. This new advertising model is expected to enhance Roblox’s revenue streams and contribute positively to its EBITDA. These developments indicate a mixed outlook for Roblox, with varying analyst opinions on its growth trajectory.
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