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Investing.com - Piper Sandler has raised its price target on Roblox Corp. (NYSE:RBLX) to $180.00 from $175.00 while maintaining an Overweight rating on the stock. The new target represents potential upside from the current price of $132.22, with the stock already delivering an impressive 180% return over the past year, according to InvestingPro data.
The research firm cited Roblox’s improving ability to surface and promote content, which strengthens confidence in the long-term platform opportunity. According to Piper Sandler’s analysis, the viral hit "Steal a Brainrot" has surpassed "Grow a Garden" as the number one experience of all time on a visits-per-day basis.
Visitor data for top 10 experiences in August showed accelerated growth of 260% year-over-year. Piper Sandler’s daily active user regression analysis indicates potential results above Street expectations, prompting the firm to raise its third-quarter and fourth-quarter estimates.
The research note outlines a bull case scenario where bookings could accelerate to 59% year-over-year growth in the third quarter. Piper Sandler expects more hit games to emerge on the platform.
Roblox continues to demonstrate strength in content discovery and promotion, factors that contributed to the price target increase while maintaining the Overweight rating.
In other recent news, Roblox Corp . has seen several significant developments. The company announced the departure of Chief Product Officer Manuel Bronstein, who will leave his role at the end of September. Meanwhile, Oppenheimer has maintained its Outperform rating for Roblox with a price target of $158.00, following changes announced by Epic Games to Fortnite’s in-game economy. BMO Capital also reiterated its Outperform rating with a $150.00 price target, highlighting a notable 8.5% increase in developer revenue share announced at Roblox’s annual developer conference. Piper Sandler continues to rate Roblox as Overweight with a $175.00 price target, praising the new Moments short-form video discovery tool unveiled at the conference. Oppenheimer further expressed an "incrementally positive" outlook on Roblox’s long-term growth prospects in interactive entertainment and advertising after attending the developer conference. These developments reflect the company’s ongoing engagement with its developer community and strategic moves in the digital entertainment space.
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