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Roblox's Price Target From Morgan Stanley Raised to $87 From $80 as Q1 Report Shows Strong User Growth; Overweight Kept

05/11/2021 05:52

09:41 AM EDT, 05/11/2021 (MT Newswires) -- Roblox (RBLX) received a boost to its price target Tuesday from Morgan Stanley after the game developer's Q1 report late Monday showed daily active users and bookings soared in the quarter even as the company's top and bottom lines missed Street consensus views.

Morgan Stanley's new price target on Roblox's stock is $87 per share, up from $80, while the firm kept its investment rating on the stock at overweight. The stock, which just began public trading in March was 4% higher in early Tuesday trade.

"Roblox continues to add more users and engagement even as re-opening continues ... and users are spending dollars too," Morgan Stanley said in a Tuesday note to clients. "This continued user, engagement, and bookings growth should give investors more confidence in the durability of RBLX's forward growth and free cash flow potential."

The firm raised its estimates for Roblox's 2021 and 2022 earnings before interest, taxes, depreciation, and amortization by 17% and 38%, respectively, resulting in the higher price target.

On average, Roblox's stock has a buy investment rating from analysts polled by Capital IQ, with price targets ranging from $60 to $87.

(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)

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