Barclays Starts Roblox Corp. (RBLX) at Underweight

Barclays analyst Mario Lu initiates coverage on Roblox Corp. (NYSE: RBLX) with a Underweight rating and a price target of $20.00.

The analyst commented, "We initiate coverage of Roblox with an Underweight rating and $20 price target. RBLX has been one of the main beneficiaries of the pandemic, seeing users and bookings increase 2.5x since 1Q20 as users joined the platform as a means to socialize with their friends digitally through Roblox experiences. These experiences are what we consider as the only true metaverse today despite looming threats from Meta's Horizon Worlds and Manticore Games' Core. However, looking beyond Covid, we believe Roblox's core demographic are users aged 5-24, with high-ARPU regions such as the US and Europe already 30% penetrated, suggesting both user and bookings growth may be challenged moving forward, which we think may result in further potential downward revisions."

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 $35.40 yesterday.

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