Roblox's (RBLX) ongoing momentum is setting the company up for long-term growth, Oppenheimer said in a Wednesday note.
"Increasing content velocity, robust technology infrastructure, global reach, and a deep bench of under-utilized monetization features make RBLX a compelling investment, despite a 76% stock price increase since April 10," said the investment firm.
Oppenheimer noted the company's sustainable user growth momentum, the revenue potential of its rewarded video ads, and record-breaking Grow a Garden game. Oppenheimer expects further growth in the game's daily active users in the near term and projects a higher ad revenue growth over the near and long term.
Oppenheimer raised its price target on Roblox to $125 from $80 and reiterated its outperform rating.
Price: 102.76, Change: +1.64, Percent Change: +1.62
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.