Roblox trends should remain positive, says Roth MKM

Roth MKM analyst Eric Handler keeps a Neutral rating and $43 price target on Roblox (RBLX) ahead of its Q3 results. The company’s near-term outlook looks good, though the firm is awaiting on some of its long-term visibility, the analyst tells investors in a research note. Roblox should be able to at least meet Q3 forecasts driven by continued strong increases in users along with further margin expansion, though a meaningful multiple expansion for the stock is likely tied to Roblox’s ability to show progress/visibility in expanding its business model from one driver – virtual currency – to advertising and e-commerce, the firm added.