Roblox Share Price Target Cut At Stifel

Roblox (NYSE: RBLX) is down more than 61% in the last 12 months, although a 4% climb on Tuesday gave investors some reprieve. However, Stifel cut its price target on the stock in a research note.

Stifel analyst Drew Crum reduced the firm’s price target on Roblox to $40 from $44, keeping a Buy rating on the shares after the analyst reviewed his model and adjusted estimates.

The analyst’s assumptions for 2022 are mostly unchanged, with bookings at $2.817 billion, but he has cut his 2023 forecasts. 

He told investors that Roblox December KPIs are likely to be issued on or around January 17 and added that the importance of this release is notable as December has historically been Roblox’s largest month of the year in regards to bookings. 

Crum believes a strong December is needed in order to meet expectations and “reverse sentiment following what was deemed a disappointing set of KPIs for November.”

Last week, BTIG analyst Clark Lampen also lowered the firm’s price target on Roblox after updating his model ahead of its December metrics report. He cut the price target to $48 from $51, maintaining a Buy rating.

Lampen told investors in a note that his tracking of gift card activity and new user sign-ups suggests fourth-quarter bookings are slightly ahead of consensus expectations, but revenue and daily active users are expected to come in “slightly shy.”