Roblox, the renowned online gaming platform, has garnered a bullish outlook from analysts who recognize its transformation into immersive gaming and its metaverse potential.
Canaccord Genuity analyst Michael Pachter commenced coverage on Roblox with a “Buy” rating and a price target of $48. Pachter lauded Roblox for its robust growth, substantial and engaged user base, and dedication to immersive gaming and the metaverse.
“We firmly believe Roblox is strategically positioned to reap the rewards of the metaverse’s expansion,” Pachter conveyed in an investor note. “With its extensive and engaged user base, along with its substantial investments in immersive gaming experiences, the company is poised for success.”
Pachter’s optimistic perspective aligns with that of other analysts. In February, Jefferies analyst Umang Jain also initiated coverage on Roblox with a “Buy” rating and a price target of $45. Jain commended Roblox for its impressive growth and unwavering commitment to immersive gaming.
“Roblox stands as a leading global online gaming platform, characterized by its remarkable track record of growth,” Jain stated in an investor note. “The company is strategically positioned to capitalize on the metaverse’s expansion, making it an enticing long-term investment.”
Roblox’s stock price has experienced significant upward momentum in recent months and is presently trading around $40 per share. The company’s continuous growth trajectory and its unwavering focus on immersive gaming and the metaverse are projected to propel its stock price to new heights over the long term.
Highlighted below are key reasons behind analysts’ bullish stance on Roblox:
- Strong Growth: Roblox has demonstrated rapid growth in recent years, with its 2021 revenue skyrocketing by 85% to $545 million.
- Large and Engaged User Base: Boasting over 40 million daily active users, Roblox possesses a substantial and engaged user community.
- Focus on Immersive Gaming and the Metaverse: Roblox concentrates on developing immersive gaming experiences accessible to users of all ages. Additionally, the company is heavily investing in the metaverse, a virtual world accessed through various devices.
Overall, analysts view Roblox as a solid investment with a promising future. Its exceptional growth, sizable and engaged user base, and unwavering dedication to immersive gaming and the metaverse are expected to bolster the company’s stock price in the long run.
