Roblox stock price target raised to $171 from $159 at BofA Securities

Investing.com - BofA Securities raised its price target on Roblox Corp. (NYSE:RBLX) to $171.00 from $159.00 while maintaining a Buy rating on the stock. Currently trading at $127.69 with a market cap of $88.5 billion, Roblox has delivered an impressive 192% return over the past year, according to InvestingPro data.

The price target increase follows several announcements made at the Roblox Developer Conference (RDC) on September 6, 2025, where CEO Dave Baszucki revealed an increase in the company’s DevEx rate to approximately 23.4%, up from the last twelve months’ rate of 21.6%.

BofA Securities noted that an incremental $16 million in DevEx expenses was already incorporated into Roblox’s implied fourth-quarter EBITDA margin guidance of 26.7% at the high end, suggesting that previous estimates of operating expense leverage and/or top-line growth were too conservative following second-quarter results.

The firm maintained its fourth-quarter bookings estimates, which are already 6 percentage points above year-over-year guidance, while slightly reducing its fourth-quarter EBITDA margin estimate to 27% from 28%, viewing the company’s implied guidance as conservative.

BofA Securities rolled forward its valuation to 40x EV/CY27 EBITDA, compared to 56x CY26 previously, reflecting increased confidence in Roblox’s long-term growth trajectory, and noted that large-cap Rule-of-40 software companies growing at Roblox’s rate currently trade at multiples of 40x or greater.

In other recent news, Roblox Corporation has been the focus of several analyst reports and strategic developments. Needham reiterated its Buy rating for Roblox, with a price target of $159.00, following the Roblox Developer’s Conference. The firm noted the launch of "Moments," a new feature that could enhance user engagement and in-app purchases. Additionally, Roblox announced a strategic partnership with the International Age Rating Coalition (IARC) to implement standardized content ratings, replacing its existing maturity labels with region-specific ratings from authorities like the ESRB and PEGI.

BMO Capital also maintained its Outperform rating, setting a price target of $150.00, citing strong user growth in the third quarter of 2025. Their analysis showed a significant increase in average daily peak concurrent users, marking a 123% year-over-year growth. Oppenheimer echoed this sentiment, reiterating its Outperform rating with a price target of $158.00, following an investor meeting with prominent content creator KreekCraft.

Wedbush also upheld its Outperform rating, with a price target of $165.00, highlighting Roblox as a leading growth opportunity in the gaming sector. The firm praised Roblox’s proactive measures in addressing child safety concerns and noted the positive impact of recent hit games on the platform’s growth. These developments collectively indicate a robust outlook for Roblox, according to various analyst firms.

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