Wedbush analysts expect Roblox Corp (NYSE:RBLX) to report another record-breaking third quarter on October 30, given the company’s strong intra-quarter data and improving monetization.
“We view Roblox as the most compelling growth opportunity in the video game sector, given its recent hit games driving massive platform growth, its slate of new and upcoming products, and the potential to unlock additional profit drivers within its business," the analysts wrote in a note to clients on Friday.
They added that recent high-profile hits drove big increases in concurrent user and daily active user figures this quarter, which the analysts see as further evidence of Roblox’s substantial platform advantages that allow it to organically drive “massive” engagement levels.
The analysts anticipate the company’s adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) guidance to be revised to the $505 million to $535 million range, compared with the current $385 million to $435 million implied range, consensus of $496 million, and Wedbush’s estimate of $435 million.
The Wedbush equity research team reiterated their ‘Outperform’ rating and $165 per share price target on Roblox stock.
Shares of Roblox rose 1.2% to $130.72 in late-morning trading on Friday.