Roblox stock rating reiterated at Outperform by Oppenheimer

Investing.com - Oppenheimer maintained its Outperform rating on Roblox Corp. (NYSE:RBLX) with a price target of $158.00, according to a research note released Tuesday. The stock, currently trading at $124.81, has shown remarkable momentum with a 108.78% gain over the past six months. According to InvestingPro data, analyst targets for the stock range from $62 to $175.

The firm recently hosted an online investor meeting with KreekCraft (Kreek), one of the largest game streamers and content creators focused on Roblox with over 13 million YouTube subscribers. Kreek has been a vocal supporter of Schlep since Roblox’s ban of "vigilante groups" on the platform.

The discussion covered multiple topics including Roblox’s communication challenges with younger audiences, content moderation practices, recent user growth trends, generational shifts in players, advertising strategies, and monetization opportunities.

Oppenheimer believes that "Schlep Gate" and additional public relations pressure on Roblox present "immaterial risks" to the company’s recent growth momentum, according to the research note.

The firm highlighted that the influx of new generation alpha players creates a fresh growth opportunity for Roblox, supporting its continued positive outlook on the stock.

In other recent news, Roblox Corp . reported significant financial achievements, with S&P Global Ratings upgrading the company to ’BBB-’ from ’BB+’ due to robust user growth and strong financial performance. As of June 30, Roblox increased its gross bookings to $5.1 billion on a trailing-12-month basis, marking a 34% rise from the previous year. Meanwhile, the company is facing legal challenges as the Louisiana Attorney General filed a lawsuit alleging Roblox fails to protect children from online predators. Despite these concerns, Wedbush reiterated its Outperform rating with a $165 price target, highlighting Roblox as a compelling growth opportunity in the video game sector. The firm praised Roblox’s quick response to child safety issues and its recent game successes that drive platform growth. Oppenheimer also maintained an Outperform rating with a $158 price target, acknowledging platform abuse as an inherent challenge for large-scale social platforms. Additionally, TD Cowen raised its price target for Roblox to $77 from $54, while maintaining a Sell rating, noting a shift in engagement dynamics that resemble social media interactions. These developments reflect the complex landscape Roblox navigates as it continues to expand and adapt.

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