Eric Sheridan, an analyst from Goldman Sachs, reiterated the Hold rating on Roblox (RBLX – Research Report). The associated price target is $63.00.
Eric Sheridan has given his Hold rating due to a combination of factors that reflect both the opportunities and challenges facing Roblox. The company’s recent Q4 ’24 earnings report indicated positive trends in monetization and engagement, yet user growth did not meet expectations partly due to the previous year’s PlayStation launch and the exit from the Turkish market. Additionally, Roblox management has outlined a trajectory for bookings growth in 2025 that suggests stronger performance in the first half of the year compared to the second half.
While the company’s results and forward guidance were largely in line with estimates, the market reaction suggests high investor expectations. The focus remains on whether improvements in the platform can sustain user and booking growth while balancing increased investments, such as headcount, with the goal of expanding margins. Although Sheridan acknowledges Roblox’s strong position in the gaming and metaverse sectors, as well as its potential for long-term growth, the Hold rating reflects a cautious approach given the near-term uncertainties and a slight downside potential based on the updated 12-month price target.
In another report released today, Barclays also maintained a Hold rating on the stock with a $46.00 price target.
Based on the recent corporate insider activity of 191 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of RBLX in relation to earlier this year.