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Learn moreBTIG lifted its price target on Roblox Corporation (NYSE:RBLX) from $30 to $41 but maintained its Sell rating on the stock. This update came after the firm attended the Roblox Developers Conference in San Jose, California, on September 11.
The research firm highlighted several factors that could support the company's bookings growth, including the company's Roblox Everywhere initiative, the introduction of 2D and 2.5D games, and the expansion of on-platform advertising. BTIG expects greater reach and the rollout of pre-roll advertising to provide support for bookings in the near term.
However, BTIG also pointed to some longer-term risks. It noted that direct distribution through standalone apps and a move away from opt-in advertising could put pressure on developer relationships and the overall health of the platform over time.
BTIG expects Roblox Corporation (NYSE:RBLX) to beat estimates in the third quarter, mainly because of the contribution from Steal an Egg. The firm sees mid-single-digit percentage upside on an organic basis compared with the high end of the company's guidance. The firm updated its estimates based on Q3 tracking and feedback from developers gathered at the conference.
BofA Securities also raised its price target on Roblox Corporation (NYSE:RBLX) from $44 to $48 and kept its Neutral rating on the stock.
The firm raised its target multiple to 20 times enterprise value to calendar-year 2027 EBITDA, pointing to a higher likelihood of viral hits emerging on the platform. BofA said Roblox Corporation (NYSE:RBLX) has made significant product and strategic updates that support its higher target. At the same time, it continues to see competition from GTA 6 as a concern.
Wells Fargo was more bullish as it raised its price target from $46 to $64 and maintained an Overweight rating. The firm believes Roblox Corporation's (NYSE:RBLX) business has bottomed and that a positive inflection is now underway.
Earlier, Roblox Corporation (NYSE:RBLX) shares fell after the company reported its Q2 2026 results on July 30. The company guided for Q3 bookings of $1.576 billion to $1.653 billion, representing a 14% to 18% year-over-year decline. The company also decided not to provide full-year guidance as it accelerated its planned shift to quarterly-only guidance.
Despite the recent price target increases, overall analyst sentiment toward Roblox Corporation (NYSE:RBLX) remains mixed. Of the 37 analysts covering the company, 49% rate the stock a Buy, 46% have a Hold rating, and 5% rate it a Sell.
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