Peeling Back The Layers: Exploring Roblox Through Analyst Insights

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In the latest quarter, 7 analysts provided ratings for Roblox RBLX, showcasing a mix of bullish and bearish perspectives.

The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.

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

Analysts have recently evaluated Roblox and provided 12-month price targets. The average target is $47.43, accompanied by a high estimate of $55.00 and a low estimate of $40.00. Highlighting a 9.83% decrease, the current average has fallen from the previous average price target of $52.60.

Deciphering Analyst Ratings: An In-Depth Analysis

The perception of Roblox by financial experts is analyzed through recent analyst actions. 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
Nick McKay Wedbush Lowers Outperform $46.00 $56.00
Thomas Champion Piper Sandler Lowers Overweight $40.00 $56.00
Bernie McTernan Needham Lowers Buy $40.00 $55.00
Eric Handler Roth MKM Maintains Buy $55.00 $55.00
Mike Hickey Benchmark Maintains Buy $50.00 -
Cory Carpenter JP Morgan Raises Overweight $48.00 $41.00
Drew Crum Stifel Maintains Buy $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: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Roblox compared to the broader market.
  • Price Targets: Analysts predict movements in price targets, offering estimates for Roblox's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.

Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of Roblox's market position. Stay informed and make well-informed 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 Economic Impact: An Analysis

Market Capitalization Analysis: With a profound presence, the company's market capitalization is above industry averages. This reflects substantial size and strong 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. As compared to its peers, the company achieved a growth rate higher than the average among peers in Communication Services sector.

Net Margin: Roblox's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of -43.16%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Roblox's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of -320.37%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): Roblox's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of -5.43%, the company may face hurdles in achieving optimal financial returns.

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.

Analyst Ratings: Simplified

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

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.

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