Piper Sandler raises Roblox stock price target to $138 on strong usage trends

Published 24/07/2025, 16:40
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Investing.com - Piper Sandler has raised its price target on Roblox Corp . (NYSE:RBLX) to $138.00 from $105.00 while maintaining an Overweight rating on the stock. The new target sits well within the current analyst range of $45 to $152, with the stock trading at $118.93. According to InvestingPro analysis, the stock appears overvalued at current levels, despite showing impressive returns of nearly 197% over the past year.

The increase comes after the investment firm observed strong usage trends through the second quarter of 2025, with the game "Grow a Garden" described as "a massive hit" by the firm.

Piper Sandler noted multiple new experiences climbing Roblox’s usage leaderboard, and expressed positive sentiment about the recent launch of rewarded video, though it indicated that expectations for advertising potential remain low.

For the second quarter, Piper Sandler projects Roblox will reach 115 million daily active users, with bookings of $1.31 billion (representing 37% year-over-year growth) and EBITDA of $212 million.

The firm also mentioned that this quarter will feature commentary from Roblox’s new CFO Naveen Chopra, who recently joined the company.

In other recent news, Roblox Corporation is set to release its Q2 2025 financial results, with Benchmark maintaining a Buy rating and a price target of $77.00 ahead of the announcement. Canaccord Genuity has increased its price target for Roblox to $125.00, citing strong user engagement metrics and improvements in search and discovery features. BMO Capital has also raised its price target to $135.00, following an in-depth analysis of the "Grow a Garden" experience, which recently set a new record with 21.9 million concurrent users. Additionally, Roblox has introduced new safety tools for teenagers, including age verification features aimed at enhancing platform interactions and parental oversight. The company has also launched a licensing platform in collaboration with Netflix (NASDAQ:NFLX), Lionsgate, Sega, and Kodansha to create new gaming experiences based on popular franchises. These developments reflect Roblox’s ongoing efforts to expand its platform and enhance user engagement.

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