AI-Driven Automation To Drive Roblox's Margins By 2030, Analyst Boosts Target
Portfolio Pulse from Nabaparna Bhattacharya
Truist Securities analyst Matthew Thornton has reiterated a Hold rating on Roblox Corporation (RBLX), raising the price target to $45 from $42. Thornton believes AI will have a significant impact on RBLX's content creation and cost structure, particularly in Trust & Safety costs. He also expects RBLX to expand to other platforms, with Xbox accounting for at least 2% of RBLX bookings in 2022. Thornton estimates daily user growth of 23%/18%/15% in 2023/2024/2025 and views the forward consensus AEBITDA as too low in the short term.
July 18, 2023 | 6:39 pm
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Roblox's price target has been raised to $45 by Truist Securities analyst Matthew Thornton, who believes AI will significantly impact the company's content creation and cost structure. He also expects the company to expand to other platforms and sees potential for user growth.
The analyst's positive outlook on Roblox, including the raised price target and the expected impact of AI on the company's operations, could potentially drive the stock price up in the short term. The expected user growth and expansion to other platforms also indicate potential for increased revenues.
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