Roblox (RBLX, Financial) received an upgrade from Oppenheimer on Thursday, moving from a “market perform” to an “outperform” rating. The firm pointed to the recent decline in the stock's price as creating what it described as a strong buying opportunity for investors with a long-term outlook.
The analysts described Roblox as a standout name among profitable growth players in the interactive entertainment space. They noted that the company's operations remain unaffected by tariff concerns, reinforcing its appeal during market volatility.
Oppenheimer's latest industry checks also suggest that Roblox will begin generating revenue from programmatic video advertising in 2025.
Looking further out, the firm expects Roblox to continue outperforming its gaming peers in terms of bookings growth and margin improvement. This forecast is attributed to the company's user expansion trajectory, proprietary technology backbone, and largely untapped monetization capabilities.
Oppenheimer has assigned Roblox a price target of $70, representing a 22.1% upside from current levels. The stock is currently down 2.5% for the year, while the S&P 500 has declined by over 7%.
