Roblox added to ‘Best Ideas List’ at Wedbush

Wedbush added Roblox (RBLX) to the firm’s “Best Ideas List” while keeping an Outperform rating on the shares with a $49 price target The firm expects the company’s revenue growth to outpace the industry for the next three years on continued traffic growth, growth in advertising, the potential for adding recurring revenues from season passes and a change to the developer pay structure announced in September. Roblox has begun its transformation from a collection of games to a true platform, the analyst tells investors in a research note. Wedbush says that while it will likely take some time for game publishers to modify existing games like Monopoly Go! and PUBG Mobile so that they work on the Roblox platform, it expects to see traction as early as next year, “with a sharp uptick in revenues and profitability for Roblox thereafter.” The stock in premarket trading is up 2% to $42.80.