Roblox (NYSE:RBLX) shares climbed 4% in Monday’s trading after a number of Wall Street analysts called it a buy.
Roblox went public in March in a direct listing and topped a market cap of $43 billion soon after.
Goldman Sachs’s (NYSE:GS) analyst Michael Ng has pegged the value of the shares at $81, which is 14% higher than the current price.
Morgan Stanley (NYSE:MS) analyst Brian Nowak set a target of $80.
“Given RBLX’s unique offering that combines elements of social media and gaming, we view leading digital platforms across social/interactive entertainment as the primary comps. At ~16x our ’22 Sales, RBLX is currently trading in line with the peer-based growth regression,” Nowak said in his note.
Nowak said a premium is justified for Roblox given its platform captures higher engagement (which leads to more monetization optionality) and has a lower content risk than some peers.
Calling it “cure for the common mobile investment,” Bank of America (NYSE:BAC) analyst Ryan Gee set a target of $78. Gee said Roblox offers a unique exposure to the large and growing mobile market.
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