RBLX - Roblox Vs. Fortnite Rivalry: Analyst Confident In Roblox's Monetization Expertise | Benzinga
Wedbush analyst Nick McKay reiterated Roblox Corp (NYSE:RBLX) with an Outperform and a $53 price target.
The analyst expects Roblox to deliver fourth-quarter upside, with gift cards, new platforms, and recent product innovations extending the positive momentum seen throughout the year’s first three quarters.
The incremental headwind from Epic Games’ new Fortnite content is a critical risk to his optimistic view.
McKay noted that the lack of Fortnite on mobile platforms has likely helped create two divergent player bases.
Also Read: Roblox Eyes Global Expansion: Analyst Hypes Platform’s Potential
The analyst is confident that Roblox’s monetization expertise across mobile, its website, and prepaid cards limited the potential drag from Fortnite in the fourth quarter.
Roblox appears to have de-risked initial fiscal 2024 guidance to a certain extent by blessing consensus figures at its Investor Day, as per the analyst.
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