On Friday, Jefferies analyst James Heaney adjusted the price target for Roblox Corp . (NYSE: NYSE:RBLX) shares, increasing it to $70.00 from the previous target of $66.00. The firm has decided to maintain a Hold rating on the stock. According to InvestingPro data, the stock has delivered an impressive 84.79% return over the past year, though technical indicators suggest the stock may be in overbought territory. The adjustment comes in response to Roblox’s recent performance, which included a 31% growth in bookings and an approximate 750 basis points expansion in EBITDA margin, surpassing analyst expectations.
Roblox’s financial results have been bolstered by its strategic expansion across various geographies and genres on its gaming platform. Heaney noted that the improvement was not limited to a few top experiences but was broad-based across the top 100 experiences on Roblox’s platform. This widespread improvement has been a key factor in the analyst’s optimistic outlook.
Despite the better-than-expected first-quarter EBITDA, only half of the increase was factored into the company’s raised guidance, which remains conservative according to Heaney. The analyst anticipates that Roblox will ramp up its capital expenditures and research and development investment in the second half of the year.
Heaney slightly raised his estimates for Roblox, leading to the revised price target. The new target is based on a 32 times multiple of the projected 2026 EBITDA of $1.43 billion. Based on InvestingPro’s Fair Value analysis, the stock appears slightly overvalued at current levels. For deeper insights into Roblox’s valuation and access to 10+ additional ProTips, including detailed financial health scores and comprehensive analysis, explore the full Pro Research Report available on InvestingPro.
In other recent news, Roblox Corporation has reported impressive first-quarter earnings for 2025, surpassing expectations in various financial metrics. The company noted a strong performance in bookings and adjusted EBITDA, with Needham analysts raising their price target to $79 and maintaining a Buy rating. Similarly, BMO Capital Markets increased their price target to $82, citing robust growth in daily active users and successful monetization strategies. JPMorgan also adjusted their price target to $80, highlighting a 31% year-over-year increase in bookings and an enhanced financial outlook for 2025. BTIG maintained a Buy rating with a $73 target, acknowledging the company’s better-than-expected financial results, including higher bookings and free cash flow. Additionally, Goldman Sachs reaffirmed a Neutral rating with a $63 target, noting positive indicators from new initiatives aimed at boosting long-term engagement and monetization. Analysts across the board have recognized Roblox’s strategic initiatives, such as pricing optimizations and marketplace improvements, as key contributors to the company’s continued success. Despite conservative full-year guidance, analysts see potential for future growth, particularly in advertising and user engagement.
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