Roblox Gets Buy Rating From Needham
By Sam Boughedda
Investing.com — Roblox Corp (NYSE:) shares rose 6% on Friday, looking to reclaim some of this week’s losses following a buy rating from Needham.
Roblox shares fell 9% Wednesday and a further 2% Thursday after it reported its November metrics, which disappointed investors after missing expectations.
However, Needham analyst Bernie McTernan is still bullish on the stock, assigning it a positive rating and setting a $136 price target. The analyst said the company is in the early stages of entering the market and is estimated to hold an approximately 1% share.
McTernan also commented on the company’s content and social aspect as being “two powerful network effects working in tandem” to help Roblox grow its market share.
The analyst also cited Roblox’s continued daily active users, engagement, and 20% annual bookings growth, alongside it being a metaverse platform as advantages the company has going forward.
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