Roblox price target lowered to $40 from $56 at Piper Sandler

Piper Sandler lowered the firm’s price target on Roblox to $40 from $56 and keeps an Overweight rating on the shares. The company reported “disappointing” Q1 results and lowered its fiscal year bookings guidance, the analyst tells investors. While results for the quarter were overall fine, weaker user engagement in the latter half of the quarter gave management pause, the firm adds. While Piper agrees with management’s decision to lower its FY guidance, this will likely create credibility issues with some investors.