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Investing.com - Raymond James has reiterated its Outperform rating and $165.00 price target on Roblox Corp. (NYSE:RBLX) following the company’s third-quarter 2025 results. The target represents significant upside potential for the stock, which has already delivered an impressive 210% return over the past year and 131% year-to-date, according to InvestingPro data.
The gaming platform delivered results that exceeded Raymond James’ near-top-of-Street estimates, with daily active users, hours engaged, and bookings all surging above the previous quarter’s levels.
The strong performance effectively addressed investor concerns that had emerged from third-party data reports in September, which had raised questions about the company’s user metrics.
Roblox’s fourth-quarter guidance suggests continued momentum through the remainder of 2025, maintaining the company’s growth trajectory in the near term.
Raymond James noted that initial commentary on 2026 raised some caution, with expected moderation in growth rates and an unexpected margin decline due to infrastructure and safety spending, though the firm maintains its constructive long-term view on the stock.
In other recent news, Roblox Corp reported its third-quarter 2025 earnings, showing a notable increase in revenue alongside a narrower-than-expected loss. The company posted an earnings per share (EPS) of -0.37, which beat the forecast of -0.49. Revenue reached 1.92 billion dollars, exceeding the anticipated 1.68 billion dollars. Despite the positive financial results, the stock experienced a decline in pre-market trading. Additionally, BofA Securities maintained its Buy rating for Roblox, raising the company’s EV/EBITDA multiple from 40x to 47x. This adjustment is based on the potential for greater EBITDA inflection following the investment cycle. The price target was reaffirmed at $171.00. These developments reflect the ongoing investor interest and analyst confidence in Roblox’s financial trajectory.
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