RBLX - Roblox's Earnings Surprise - Analyst Says Adjusted EBITDA Margins Can Comfortably Increase More Than 10% | Benzinga
Benchmark analyst Mike Hickey reiterated a Buy rating on Roblox Corp (NYSE: RBLX) with a price target of $46, up from $35.
Roblox's Q3 2023 performance demonstrated a remarkable 20% net bookings increase and a strategic reduction in expenses, positioning the company for sustained growth and profitability with significant user base expansion across key global markets.
Growth is poised to accelerate through expanding its player base, tapping emerging international markets, monetizing an advertising platform, innovating with AI, and expense growth controls for improved operating leverage.
The analyst projects Q4 revenue of $1.07 billion (consensus $1.06 billion).
Roth MKM analyst Eric Handler maintained a Buy and a price target of $50.
Roblox has the potential to expand from one to three bookings segment drivers in the next couple of years. Advertising should gain momentum in 2024, and real-world e-commerce hopefully get layered in by 2025.
Given these opportunities and mid- to high-teens DAU ...