B.Riley Starts Roblox Corp. (RBLX) at Buy

B.Riley analyst Drew Crum initiates coverage on Roblox Corp. (NYSE: RBLX) with a Buy rating and a price target of $125.00.

The analyst comments: "Over the years, Roblox has built arguably one of the premier next-generation entertainment platforms through significant investment in technology, while benefiting from two mutually reinforcing network effects, content and social, often drawing parallels to YouTube. Fast-forward to 2025, the viral hit Grow a Garden propelled the business (and stock) to record highs, representing a possible inflection point that seemed to at least temporarily validate positive sentiment, but tepid near-term guidance issued alongside 3Q earnings left investors unimpressed. We, however, view RBLX as a core holding, remain steadfast in our positive longer-term fundamental outlook, and recommend initiating or adding to positions following a -30% correction. We believe the company is well positioned to gain share on its way to a goal of capturing 10% of the global video game industry, suggesting meaningful upside relative to current levels, with a combination of user growth, content opportunities, and monetization improvements supporting a 20%+ bookings CAGR, part of what we view as a compelling financial profile for Roblox, making it one of the fastest-growing assets within its peer set."

For an analyst ratings summary and ratings history on Roblox Corp. click here. For more ratings news on Roblox Corp. click here.

Shares of Roblox Corp. closed at $99.00 yesterday.

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