Piper Sandler raises Roblox PT on strong user engagement

Investing.com -- Piper Sandler raised its price target on Roblox Corp (NYSE: RBLX) to $72 from $65 given strong user engagement and bookings momentum ahead of the company's earnings. Roblox will report earnings at February 6.

The brokerage expects fourth-quarter bookings to come in at $1.41 billion, up 25% year-over-year and about 3% above Wall Street estimates, despite management's guidance for 20% growth, which it views as overly conservative.

Reviews on PlayStation suggest console trends have held steady, and non-console growth appears underestimated, the note added, highlighting continued strong performance from popular Roblox games like Blox Fruits and Dress to Impress.

Piper Sandler also raised its full-year 2025 bookings and EBITDA estimates by 1.4% and 6.3%, respectively, citing robust momentum and a projected 1Q25 bookings guide of $1.12 billion to $1.15 billion.

The firm reiterated its "Overweight" rating, pointing to record concurrent user levels in late December and expanding demographic appeal.

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