Roblox stock price target raised to $72 at Needham

On Friday, Needham analysts increased the price target for Roblox Corp . (NYSE:RBLX) shares from $60 to $72, while maintaining a Buy rating on the stock. The adjustment reflects a valuation of 40 times the firm’s projected adjusted EBITDA for 2026, which suggests a roughly 10% multiple contraction from current levels. According to InvestingPro data, analyst targets for RBLX range from $30 to $83, with the stock showing impressive returns of over 85% in the past six months.

The analysts’ decision comes in the wake of Roblox’s recent earnings report, which showed a slowdown in bookings growth, tempering the short-term bullish sentiment. Despite this deceleration, Needham highlighted that Roblox’s underlying trends remain robust, with mobile and desktop growth reported at 27% in December. InvestingPro data reveals the company achieved revenue growth of 28.68% in the last twelve months, though it remains unprofitable with negative EBITDA of $836.88 million.

Needham’s commentary indicated a cautious approach to Roblox’s medium-term margin expansion, adjusting expectations to the lower end of the company’s multi-year guidance. This conservative stance takes into account Roblox’s strategic goal to capture a 10% share of the global gaming content market, a target that the company is actively pursuing. With a market capitalization of $44.73 billion and an overall Financial Health score of "FAIR" on InvestingPro, investors can access detailed valuation metrics and 10+ additional ProTips to better understand the company’s financial position.

The maintained Buy rating by Needham suggests that the firm remains optimistic about Roblox’s future performance, despite the recent earnings results and the subsequent bookings deceleration. The new price target of $72 signifies confidence in the company’s long-term growth trajectory and market position.

Investors and market watchers will likely monitor Roblox’s progress towards achieving its market share goals and its ability to manage margin expansion while navigating the competitive landscape of the gaming industry.

In other recent news, Roblox Corporation has been the subject of several analyst reports following a strong fourth quarter in 2024. The company reported a 19% increase in daily active users and a 21% rise in bookings, reaching $1.36 billion. Despite not meeting some analyst forecasts, Roblox’s free cash flow jumped 54% to $120 million, largely due to improved monetization efforts and operational efficiency.

Oppenheimer maintained a Perform rating for Roblox, expressing confidence in the company’s ability to increase operating expenses while achieving long-term margin expansion goals. However, the firm also voiced uncertainty regarding the trajectory of user growth.

Goldman Sachs, on the other hand, lifted its price target for Roblox to $63 while maintaining a Neutral rating. The firm acknowledged solid monetization and engagement trends from Roblox, despite a shortfall in daily active users.

Raymond (NSE:RYMD) James increased its price target for Roblox to $76, maintaining a Strong Buy rating. The firm expressed confidence in Roblox’s long-term potential, noting encouraging trends and robust margin commentary.

Canaccord Genuity maintained a Buy rating and $80 price target on Roblox, focusing on the company’s growth prospects. The firm acknowledged Roblox’s mixed performance but remained optimistic about the company’s future.

Lastly, BTIG raised its price target for Roblox to $73, maintaining a Buy rating. The firm recognized the company’s strong start to the first quarter of 2025, anticipating potential upside against top-line and margin guidance.

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