Roblox Corp (NYSE:RBLX) is a buy with Deutsche Bank, which expects its daily users to nearly double by 2025.
It compares it to tech giants such as Amazon, Uber and YouTube, with its developer base being a key advantage in the market.
Analysts at Deutsche also believe the “growing developer base” is vital to the long-term success of the Nasdaq listed company.
In the last three years, it has more than doubled the builders in its roster to 10mln, and Deutsche Bank clearly lays out how this is beneficial.
"More developers lead to more experiences, which entices more users and generates more revenue which can be used for more developers," the broker said.
The broker noted that daily active users for the online game and creation platform have climbed above 50mln and although growth is expected to slow compared to the pandemic period, it remains optimistic that the number can climb to 96mln by 2025.
The target price is set at US$60, with shares currently trading at US$41.47 as of midday.