Roblox Stock (RBLX:NSD) Analysts rate as a Buy, $39.54 target

STA Research
by: STA Research
Roblox Corp

Roblox Stock Analysis:

Based on the Roblox stock forecasts from 19 analysts, the average analyst target price for Roblox stock is USD 39.54 over the next 12 months. Roblox Corp’s average analyst rating is Buy . Stock Target Advisor’s own stock analysis of Roblox Corp is Neutral, which is based on 4 positive signals and 4 negative signals. At the last closing, Roblox stock price was USD 35.56Roblox stock price has changed by +2.13% over the past week, -9.97% over the past month and -53.56% over the last year.

Roblox stock forecasts from 15 Crowd Analysts, has the average analyst target price for Roblox Corp at USD 64.04 over the next 12 months. Roblox Corp’s average analyst rating is a Strong Buy rating.


Maintains Jefferies Financial LLC
USD 43 » USD 40

About Roblox Corp (RBLX:NYE)

Roblox Corporation develops and operates an online entertainment platform. The company offers Roblox Studio, a free toolset that allows developers and creators to build, publish, and operate 3D experiences, and other content; Roblox Client, an application that allows users to explore 3D digital world; Roblox Education for learning experiences; and Roblox Cloud, which provides services and infrastructure that power the human co-experience platform. It serves customers in the United States, the United Kingdom, Canada, Europe, China, the Asia-Pacific, and internationally. The company was incorporated in 2004 and is headquartered in San Mateo, California.


Latest Analyst Ratings for RBLX’s stock:

Maintains Jefferies Financial LLC Hold USD 43 » USD 40 2022-10-14
Maintains BTIG Research Buy USD 58 » USD 51 2022-10-13
Initiates Coverage On Barclays Underweight USD 20 2022-10-11
Initiated by Moffett Nathanson Underperform USD 19 2022-10-03
Target Lowered Needham & Company Buy USD 55 » USD 53 2022-09-16
Initiated by Cowen Underperform USD 31 2022-09-12
Target Raised by Citigroup USD 55 2022-08-22
Initiates Coverage On Wolfe Research Peer Perform 2022-08-17
Target Raised by BTIG Research USD 58 2022-08-16
Target Up Jefferies Financial LLC USD 43 2022-08-15
Maintains Deutsche Bank Capital Buy USD 45 » USD 52 2022-08-12
Maintains Needham & Company LLC Buy USD 45 » USD 55 2022-08-11
Target Raised by Wedbush Neutral USD 28 » USD 34 2022-08-11
Target Up STA Research Buy USD 60 2022-08-11
Maintains Morgan Stanley Equal-Weight USD 25 » USD 32 2022-08-10
Maintains Truist Securities Hold USD 29 » USD 45 2022-08-09
Target Raised MKM Partners Neutral  USD 28 » USD 40 2022-08-01
Target Raised by Bank of America Buy USD 40 » USD 45 2022-07-14
Target Raised by Needham  Buy USD 40 » USD 45 2022-07-14
Target Lowered by BTIG Research Buy USD 61 » USD 57 2022-07-12
Maintains Citigroup Buy USD 52 » USD 46 2022-07-07
Downgrades Truist Securities Hold USD 36 » USD 29 2022-06-17
Maintains Morgan Stanley Equal-Weight USD 27 » USD 25 2022-06-16
Target Lowered by MKM Partners Neutral USD 30 » USD 28 2022-06-16
Target Lowered by Benchmark USD 45 » USD 21 2022-06-15


Roblox Stock News:

Roblox just released their monthly active user metrics, which showed that Daily active users on the company’s platform were 57.8 million in September, which were up 23% year over year.  The amount of hours on the platform  were 4 billion in September, up 16% from the previous year.

Roblox’s CEO David Baszucki spoke of the results “many opportunities to increase monetization” and he mentioned that advertising and 3D immersive shopping were focus areas where the company sees significant growth.  The company reiterates that they are very bullish on future  prospects reagrding the platform as a direct result of its investments in its employees, expansion of server capacity alongside a increase in global data centers.


What we like:

High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Superior risk adjusted returns

Roblox stock has performed well, on a risk adjusted basis, compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile.

Low volatility

Roblox stock annual returns have been stable and consistent compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile. Although stability is good, also keep in mind it can limit returns.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.


What we don’t like:

Overpriced compared to book value

Roblox stock is trading high compared to its peers median on a price to book value basis.

Overpriced on cashflow basis

Roblox stock is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Highly leveraged

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Negative free cash flow

The company had negative total free cash flow in the most recent four quarters.


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