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Investing.com -- Wolfe Research upgraded Roblox Corp (NYSE:RBLX) to Outperform from Peer perform and lifted its price target to $150, pointing to new revenue streams from advertising and regional pricing that could accelerate growth.
The broker raised its 2026 bookings and EBITDA estimates by 7% and 13%, respectively, forecasting that regional pricing will add about $318 million in bookings and advertising about $300 million in gross revenue. Its estimates now sit 9% and 8% above Wall Street consensus.
Wolfe said Roblox is benefiting from “platform flywheel” effects such as improved search and discovery, faster content creation, pricing optimizations, and early-stage ad revenue.
The firm said Roblox’s push into new gaming categories and AI-driven content should further support user and revenue growth, with a long-term target of reaching one billion daily active users from 112 million today.
The analysts acknowledged risks around stock-based compensation, safety controversies and regulatory scrutiny, but said those have historically not altered the company’s fundamentals.
At about 36 times 2026 EBITDA, Roblox trades below comparable gaming and internet peers on a growth-adjusted basis, Wolfe said.
The firm’s $150 target is based on a 50x multiple of 2026 EBITDA, reflecting what it called Roblox’s “long runway for durable growth.”