Roblox stock rating reiterated at Outperform by BMO amid strong user growth

Published 03/09/2025, 11:16
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Investing.com - BMO Capital has reiterated its Outperform rating and $150.00 price target on Roblox Corp. (NYSE:RBLX) following analysis showing accelerated user engagement in the third quarter of 2025. According to InvestingPro data, the stock has delivered an impressive 199% return over the past year, though current analysis suggests the stock is trading above its Fair Value.

The investment firm’s data indicates that year-over-year growth in average daily peak concurrent users has accelerated quarter-to-date, up 123% compared to 74% in the second quarter of 2025.

BMO Capital notes that cumulative daily visits to the top four games on Roblox have reached new records, supporting its positive outlook on the company’s performance.

The firm has raised its third-quarter 2025 bookings estimate for Roblox by 2.5% based on these engagement trends.

BMO Capital also addressed recent concerns about child safety on the platform, stating that these fears are "grossly overstated" and suggesting investors use any resulting share pullbacks as buying opportunities.

In other recent news, Roblox has been the subject of various developments that may interest investors. Oppenheimer and Wedbush both reiterated their Outperform ratings on Roblox, with price targets set at $158 and $165, respectively. Wedbush highlighted the company’s response to child safety concerns and its recent hit games, which are driving platform growth. Oppenheimer acknowledged the ongoing challenges of platform abuse but maintained confidence in the company’s potential. Meanwhile, TD Cowen raised its price target for Roblox to $77 from $54, although it kept a Sell rating, citing shifts in engagement trends that resemble social media dynamics.

In legal news, the Louisiana Attorney General filed a lawsuit against Roblox, alleging the company fails to protect children from online predators. The lawsuit claims that Roblox facilitates the distribution of child sexual abuse material and enables exploitation. These developments come amid heightened scrutiny of the platform’s safety measures. Investors may want to keep an eye on how these legal and safety issues unfold, as they could impact the company’s operations and public perception.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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