Roblox stock price target raised to $76 at Raymond James

On Thursday, Raymond (NSE:RYMD) James maintained a Strong Buy rating on Roblox Corp . (NYSE:RBLX) and increased its price target to $76 from $63. The adjustment followed Roblox’s fourth-quarter 2024 report, which showed solid performance but did not meet the high expectations of some investors. According to InvestingPro data, the stock has delivered impressive returns of 85.89% over the past year and 30.44% year-to-date, though current analysis suggests the stock is slightly overvalued. The firm’s enthusiasm for Roblox remains strong, with the stock having risen 10% in the five trading days before the earnings call.

The report highlighted robust third-party user data, which had fueled investor optimism prior to the earnings release. While there were concerns over the quarter-over-quarter decrease in Daily Active Users (DAUs), Raymond James believes the reasons provided—such as seasonality, the launch on PlayStation, and the full-quarter impact of the Turkish platform ban—do not undermine the long-term potential of Roblox. InvestingPro data reveals that while the company maintains gross profit margins of 24.67%, it reported a net loss of over $1 billion in the last twelve months.

Analysts at Raymond James found January trends to be encouraging and noted solid margin commentary, indicating higher Developer Exchange (DevEx) payments while still achieving overall margin leverage. This was seen as a positive sign for both the content funnel and Roblox’s profit and loss statement.

The firm reiterated its Strong Buy rating, expressing confidence in the fundamental drivers of Roblox’s story. These include strong user and monetization opportunities, which remain outstanding, as well as incremental but increasing contributions from advertising, commerce, and paid experiences. The analysts believe these factors continue to support the company’s growth trajectory.

In other recent news, Roblox Corp. has been the focus of multiple analyst reports. Canaccord Genuity maintained their Buy rating on Roblox, expressing optimism about the company’s growth prospects despite mixed fourth-quarter performance. The company’s investments in infrastructure and AI tools were highlighted, as well as plans for further investment in large-scale events throughout 2025.

BTIG analyst Clark Lampen raised the price target for Roblox to $73, maintaining a Buy rating. Lampen noted strong user growth in the early part of the first quarter and expressed confidence in Roblox’s start to the period.

Benchmark analyst Mike Hickey increased the price target for Roblox to $71, reaffirming a Buy rating. Hickey remains optimistic about Roblox’s long-term growth strategy, suggesting that bookings growth could potentially surpass the growth in user and hour engagement for fiscal 2025.

BofA Securities increased its price target on Roblox to $79, keeping a Buy rating. The adjustment reflects a valuation based on a higher expected enterprise value to forecasted calendar year 2026 earnings before interest, taxes, depreciation, and amortization (EV/CY26E EBITDA) multiple.

Lastly, the disbanding of Hindenburg Research, known for its critical reports on public companies, led to a fractional rise in Roblox’s stock. These are recent developments impacting Roblox Corp.

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