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Investing.com -- Roblox’s content and monetization strategy is gaining traction, setting the stage for sustained long-term growth, according to Oppenheimer.
The firm reiterated its Outperform rating on Roblox and raised its price target to $125 from $80 a share, citing growing confidence in the platform’s user engagement and monetization roadmap.
“Increasing content velocity, robust technology infrastructure, global reach, and a deep bench of under-utilized monetization features make RBLX a compelling investment,” Oppenheimer analysts wrote.
Despite a 76% stock price increase since April 10, the firm believes there is still more upside.
This week, Oppenheimer hosted virtual fireside chats with five leading Roblox studios.
Among them was Splitting Point Studios, the developer behind Grow a Garden, which Oppenheimer said became the world’s most popular game over the past weekend.
"Based on conversations with studio leaders, it is clear that Roblox’s recommendation algorithm has evolved to rapidly identify new trends and content creators, and scale them to a growing global user base at a faster pace," said Oppenheimer.
These discussions reinforced analyst optimism about Roblox’s “sustainable user growth momentum, rewarded ad revenue potential, and long-term market share gain potential from other gaming platforms.”
Oppenheimer now sees upside to both its second-quarter 2025 and full-year 2026 estimates.
The firm declared, “Momentum is building for long-term growth,” and that it believes Roblox is well-positioned to grow its share of the global gaming market over the coming years.