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Navigating 10 Analyst Ratings For Roblox

Author: Benzinga Insights | April 23, 2024 08:01am

Across the recent three months, 10 analysts have shared their insights on Roblox (NYSE:RBLX), expressing a variety of opinions spanning from bullish to bearish.

The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 3 4 3 0 0
Last 30D 0 1 0 0 0
1M Ago 1 0 0 0 0
2M Ago 0 0 0 0 0
3M Ago 2 3 3 0 0

Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $51.9, a high estimate of $57.00, and a low estimate of $46.00. This upward trend is evident, with the current average reflecting a 20.0% increase from the previous average price target of $43.25.

price target chart

Understanding Analyst Ratings: A Comprehensive Breakdown

The analysis of recent analyst actions sheds light on the perception of Roblox by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
Cory Carpenter JP Morgan Raises Overweight $48.00 $41.00
Drew Crum Stifel Maintains Buy $53.00 -
Eric Sheridan Goldman Sachs Raises Neutral $48.00 $35.00
Brian Pitz BMO Capital Raises Outperform $57.00 $55.00
Eric Handler Roth MKM Raises Buy $55.00 $50.00
Nick McKay Wedbush Raises Outperform $56.00 $53.00
Ross Sandler Barclays Raises Equal-Weight $46.00 $26.00
Eric Sheridan Goldman Sachs Raises Neutral $48.00 $35.00
Bernie McTernan Needham Raises Buy $55.00 $51.00
Nick McKay Wedbush Maintains Outperform $53.00 -

Key Insights:

  • Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Roblox. This information offers a snapshot of how analysts perceive the current state of the company.
  • Rating: Analysts unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into expectations for the relative performance of Roblox compared to the broader market.
  • Price Targets: Analysts set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.

Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Roblox's market standing. Stay informed and make well-considered decisions with our Ratings Table.

Stay up to date on Roblox analyst ratings.

Discovering Roblox: A Closer Look

Roblox operates an online video game platform that lets young gamers create, develop, and monetize games (or "experiences") for other players. The firm effectively offers its developers a hybrid of a game engine, publishing platform, online hosting and services, marketplace with payment processing, and social network. The platform is a closed garden that Roblox controls, earning revenue in multiple places while benefiting from outsourced game development. Unlike traditional video game publishers, Roblox is more focused on the creation of new tools and monetization techniques for its developers then creating new games or franchises.

Roblox's Financial Performance

Market Capitalization Analysis: The company's market capitalization is above the industry average, indicating that it is relatively larger in size compared to peers. This may suggest a higher level of investor confidence and market recognition.

Revenue Growth: Roblox's remarkable performance in 3 months is evident. As of 31 December, 2023, the company achieved an impressive revenue growth rate of 29.52%. This signifies a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Communication Services sector.

Net Margin: Roblox's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of -43.16%, the company may encounter challenges in effective cost control.

Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of -320.37%, the company may need to address challenges in generating satisfactory returns for shareholders.

Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of -5.43%, the company may need to address challenges in generating satisfactory returns from its assets.

Debt Management: With a high debt-to-equity ratio of 23.11, Roblox faces challenges in effectively managing its debt levels, indicating potential financial strain.

The Basics of Analyst Ratings

Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

Posted In: RBLX

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