Piper Sandler Starts Roblox Corp. (RBLX) at Overweight

Piper Sandler analyst Thomas Champion initiates coverage on Roblox Corp. (NYSE: RBLX) with a Overweight rating and a price target of $54.00.

The analyst comments "Roblox is already a large user network at ~60MM DAU’s and ~250MM MAU’s, but we see plenty of room for growth. We estimate the global population (exChina) is close to 1.4BN in the 7-25 year old age group. We see a relatively intuitive path to DAU’s doubling in the next 5 years. Similarly, the platform today looks under-monetized at ~$0.06 per user-hour. By comparison, we estimate peers Snap and YouTube monetize at closer to $0.09 and $0.12 per user-hour, respectively. Finally, while user time spent is high today at ~2.5 hours / user / day, we still see opportunity for growth from categories like social and streaming video, which account for 5-6 hours/day of teen usage on average."

For an analyst ratings summary and ratings history on Roblox Corp. click here. For more ratings news on Roblox Corp. click here.

Shares of Roblox Corp. closed at $45.71 yesterday.

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