Roth/MKM elevated its rating on Roblox Corp. (NYSE:RBLX) from Neutral to Buy and pushed the firm's price target to $84.00 from $78.00 on Monday. The upgrade coincided with a notable intraday move in the shares, which rose 9.7% to $66.42 from the prior close of $60.57.
The research firm said the change reflects Roblox’s stronger-than-anticipated guidance for 2026 bookings and management’s projection of a bookings compound annual growth rate in excess of 20% over the next several years. Those forward-looking booking expectations sit alongside the company’s recent top-line momentum; InvestingPro data shows Roblox recorded 35.77% revenue growth over the last twelve months.
Roth/MKM pointed to a more attractive valuation backdrop and a growing appreciation for what it described as the platform’s underlying mechanics. The firm highlighted a "strong, sustainable virtuous circle" on the platform - a dynamic in which enhancements to creator and developer tools yield higher-quality games, which in turn improve user experience and foster greater engagement.
The newly issued $84 price target is grounded in multiples applied to estimated 2026 metrics: an enterprise value-to-bookings multiple of 7x and an enterprise value-to-EBITDA multiple of 28x, per the research note.
Roblox’s recent reported results helped set the stage for these analyst moves. The company posted a material increase in bookings, recording 63% year-over-year growth. Fourth-quarter bookings totaled $2.22 billion, topping the FactSet consensus of $2.09 billion, according to the data cited in the research coverage.
Not all sell-side responses were uniform. Several firms adjusted their price targets and maintained differing stance on the shares:
- Piper Sandler trimmed its price target to $100 from $125 but retained an Overweight rating.
- Oppenheimer reduced its target to $130 from $150, keeping an Outperform rating.
- Jefferies moved its target to $70 from $85, citing peer multiple compression, while maintaining a Hold rating.
- UBS lowered its target to $74 from $103, citing concerns around artificial intelligence competition within the gaming industry.
- TD Cowen reiterated a Sell rating with a $70 price target, pointing to engagement concerns despite bookings coming in line with their estimates.
InvestingPro analysis referenced by Roth/MKM suggests Roblox may be undervalued on some metrics, though the stock trades at a high revenue multiple and was not profitable over the prior twelve-month period. Those two facts - perceived undervaluation on certain measures and elevated revenue multiples amid recent unprofitability - frame the valuation debate among analysts.
Overall, the Roth/MKM upgrade and raised target reflect confidence in Roblox's bookings trajectory and platform mechanics, even as other firms have taken a more cautious stance by adjusting targets or emphasizing engagement and competitive risks.