NUZE - Roblox (RBLX) Stock Falls Following Morgan Stanley Downgrade
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Roblox (NYSE:RBLX) stock is falling on Thursday after Morgan Stanley analyst Matthew Cost downgraded the gaming company’s shares.
That downgrade saw Cost dropping shares of RBLX stock from an “equal weight” rating to an “underweight” one. To put that in perspective, the analysts’ consensus for RBLX shares is “hold” based on 22 analysts’ opinions.
To go along with that downgrade, the Morgan Stanley analyst also dropped their price target from $27.50 to $24 per share. That represents a potential 33% downside for the shares. Also, it’s below the analysts’ consensus price target of $34.78 per share.
What’s Behind the Bearish Stance on RBLX Stock?
Here’s what Cost had to say in a note to clients obtained by StreetInsider.com:
“We believe the 1H bookings reacceleration looks priced in, with more mixed catalysts ahead as we expect slower growth in 2H and minimal upside from advertising in the near term. Limited earnings-based valuation support for shares at these levels cause us to move to UW with a $24 PT, $10 bear case.”
As today’s news drops RBLX stock, some 6 million shares are on the move at the same time. For the record, the company’s daily average trading volume is closer to 15 million shares.
RBLX stock is down 6.2% as of Thursday morning.
There’s more recent stock market news traders will want to know about below!
InvestorPlace has all of the hottest stock news ready to go for traders today! That includes everything happening with shares of Meta Materials (NASDAQ:MMAT), Bed Bath & Beyond (NASDAQ:BBBY) and NuZee (NASDAQ:NUZE) stock today. You can read up on all that news at the following links!
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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