Roblox price target lowered to $56 from $57 at BMO Capital

BMO Capital lowered the firm’s price target on Roblox to $56 from $57 but keeps an Outperform rating on the shares. The company gave a “head-scratching” 2024 guide while its Q1 Bookings of $924 likely missed the buy-side target of $940M despite coming in within the management’s prior range, the analyst tells investors in a research note. BMO maintains that Roblox has likely reached an inflection point as investments in infrastructure, trust, and safety will moderate, allowing for significant operational leverage as bookings grow faster than costs.