Roblox Corp. (RBLX) PT Raised to $71 at Benchmark
Benchmark analyst Mike Hickey raised the price target on Roblox Corp. (NYSE: RBLX) to $71.00 (from $60.00) while maintaining a Buy rating.
The analyst comments "Company Update: Roblox delivered a strong Q4, with bookings of $1.36B (+21% YoY), exceeding the high end of guidance. AEBITDA of $382M was significantly above consensus expectations, while free cash flow of $121M surpassed the high end of guidance. The company faced a tough PlayStation comp, lapping the platform's Q4 2023 launch and a significant Xbox update, which impacted console bookings. December exit growth remained strong, with mobile and desktop bookings growing 27% and prepaid/console bookings at 22%. For FY 2024, bookings grew 23.5%, and AEBITDA margin expanded by over 600 bps. Q1 2025 bookings guidance factors in strong early-quarter momentum but also reflects a tougher YoY comp due to Easter falling in Q2 this year versus Q1 in 2024. Management provided strong 2025 guidance, targeting 20% bookings growth and approximately 150 bps of margin expansion. We do think bookings growth could outpace user and hour engagement growth in fiscal 2025, as monetization initiatives continue to gain traction. We believe in the company's long-term secular growth strategy and recommend incremental purchase on opportunistic pullbacks like we're seeing today. We are raising our PT to $71 and reiterate our Buy rating."