On Thursday, Roblox Corp . (NYSE: NYSE:RBLX) shares received a boost from Raymond (NS:RYMD) James as the firm raised its price target on the stock to $63.00 from the previous $60.00, while reaffirming a Strong Buy rating. The adjustment comes amid positive indicators for the company's performance as the fourth quarter progresses.
The analyst from Raymond James highlighted that Roblox's fourth-quarter trends are shaping up well, bolstering confidence as the year comes to a close. Since the company's report in late October, several factors have contributed to this optimistic outlook.
Notably, user growth has continued to surge without any sign of slowing down through November, as tracked by RoMonitor, even outpacing high market expectations.
In addition to user growth, Roblox has been implementing new strategies for its in-game currency, Robux. The company aims to bypass mobile platform fees by introducing new deals, which is expected to encourage players to opt for purchasing methods that are more profitable for Roblox. These strategic moves are anticipated to enhance the company's bottom line.
The analyst's decision to maintain a Strong Buy rating while raising the price target reflects a belief in Roblox's improved fourth-quarter outlook. The positive developments observed are not only expected to benefit the company's performance at the end of 2024 but also suggest a promising spillover effect into 2025.
Investors and market watchers are keeping an eye on Roblox as the company continues to execute its growth strategies. With the raised price target and strong buy rating, Raymond James signals confidence in Roblox's potential for sustained growth and profitability.
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