Roblox Corp. (RBLX) PT Raised to $51 at BTIG

BTIG analyst Clark Lampen raised the price target on Roblox Corp. (NYSE: RBLX) to $51.00 (from $47.00) while maintaining a Buy rating.

The analyst comments "Last Friday (9/6), Roblox hosted its annual developers conference (RDC). New, intermediate Bookings and DAU targets were provided alongside a deeper dive into the emerging advertising and on-platform commerce initiatives (+ more; a full summary is in the body of our report). Between the two items mentioned above, we came away with a better feel for how Roblox views its end-market opportunity and the mechanisms for scaling the ad/commerce extensions over the next few years. More immediately, we see Roblox reaping the benefits of successful content discovery and landing page adjustments (implemented early 2Q), and we expect to see faster Bookings growth as a result of a better user experience and ramping engagement + monetization. The launch of Party mode (a multiplayer experience) next month could also support otherwise improving trends. With our tracking of user growth also pointing to healthy upper funnel trends and much stronger DAU/Bookings growth vs. our prior forecast and guidance, we've raised estimates and our PT ($47 to $51) to reflect a more constructive view of the 2H24/2025 setup. Additional kickers include: improving ad bookings (programmatic calls to 3P services now prohibited; changes seemingly took place in July/August) and developer-driven user acquisition (devs will be rewarded with a cut of net new users' spend starting 1H25; AppLovin [APP; Buy, $114 PT] and Unity [U; Neutral] are potential beneficiaries). Overall, we like the setup for Roblox exiting RDC and expect to see top-line momentum persist for at least the next few quarters before content discovery adjustments are lapped."

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