Price Target Update on Roblox (RBLX) Stocks After Analyst Bullish Upgrades

Significant Price Target Revisions

Analysts have revised the price target for Roblox (RBLX) stocks, showcasing their bullish outlook following recent earnings results. Despite the recent allegations raised by activist short-seller Hindenburg Research, which led to a temporary dip in stock prices, analysts are optimistic about the company's future potential.

Roblox's Recent Performance

Back on October 31, Roblox announced its Q3 2024 financial report, beating most analyst expectations with bookings reaching $1.13 billion. This performance surpassed the consensus estimates of $1.02 billion by approximately 10.8%.

• Earnings per Share (EPS): Reported at -$0.37, ahead of the expected -$0.38.
• Revenue: Came in at $919 million, under the average estimated $1.02 billion.
• Q4 Revenue Guidance: Forecasted at $947 million, slightly below expectations.

Analyst Sentiment Towards RBLX

Despite the mixed results, top equity researcher Thomas Champion from Piper Sandler raised his price target from $54 to $64, representing a 26.58% upside. He mentioned that the beat was driven by increased console usage.

Ken Gawrelski from Wells Fargo also increased his price target from $54 to $58, indicating strong bookings and an optimistic outlook for the holiday season.

Investor Response to Hindenburg Report

While Hindenburg's claims about inflated user metrics raised alarm, the ongoing positive trajectory in bookings suggests resilience in RBLX's growth potential. Analysts maintain a strong outlook despite the report's implications, hinting at potential future growth and recovery.