Citigroup Hikes Roblox Corporation (RBLX)'s Price Target To $123, Maintains Buy Rating
A person taking lessons through Roblox Education, expanding their knowledge and skills.
The analysts cited robust second-quarter user data from RoMonitor and a favorable verdict on App Store fees as the reason behind the revision. They also highlighted the surge Roblox Corporation (NYSE:RBLX) has had since May after the announcement of Q1 FY25 results, with the market now pricing in an annual EBITDA of approximately $880 million.
Citigroup expects April's court ruling requiring Apple to allow third-party payments to be a major tailwind for Roblox Corporation (NYSE:RBLX). Analysts estimate that lower platform fees have the potential to boost EBITDA by between $220 million and $600 million for the company.
Roblox Corporation (NYSE:RBLX) offers an immersive platform for communication and connection, allowing users to create, work, learn, play, and connect in experiences developed by its global community of creators.
While we acknowledge the potential of RBLX as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
READ NEXT: 13 Best German Stocks to Invest in Now and Goldman Sachs Stock Portfolio: 10 Large-Cap Stocks To Buy.
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