Roblox analysts ‘is blurring the lines between social media and gaming’

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Shares in Roblox Inc. rallied on Monday after more analysts initiated positive coverage of the teen-focused social gaming platform, presenting it as a unique combination of several popular online genres. Roblox RBLX, + 4.22% shares rose to $ 72.86 in morning trading, 8.2% higher than the previous closing price. The stock was up 61% from its reference price of $ 45 set in March, when Roblox made its public debut via direct listing and the stock was up more than 50% on its first day of trading.

Read: The Roblox non-IPO: 5 Things You Need To Know About Interpolation-Focused Gaming Platform Direct Listing Analysts typically wait a period after a stock has started trading to publish research, especially if your banks they worked on the offer in question. Analysts speaking Monday morning named price targets higher than the current rate for Roblox shares. Morgan Stanley analyst Brian Nowak initiated an overweight rating on the stock and a price target of $ 80, saying that Roblox’s unique gaming and social media offering positioned it as a competitor to major digital platforms from social / interactive entertainment. Nowak said that Roblox Daily Active Users, or DAUs, spent an average of 154 minutes a day on the platform, compared to 40 minutes a day for Facebook Inc. FB, + 3.33% of users, and roughly 150 minutes a day for console gamers. , and talks about how Roblox “is blurring the lines between social media and gaming.” B of A analyst Ryan Gee initiated coverage with a buy rating and price target of $ 78, saying that Roblox “brings unique exposure to a large and growing mobile device. [total addressable market] with less relative capital risk than traditional content creators. “Gee said Roblox combined the social media aspects of Snap Inc. SNAP, + 0.01% and TikTok with the gaming aspects of Epic Games’ Fortnite, Activision’s ATVI Blizzard Inc., + 2.82% from Call of Duty and Take-Two Interactive Software Inc .’s TTWO, + 2.08% GTA Online and the content creation aspects of Unity, Twitch and Alphabet Inc.’s GOOG, + 4.28% GOOGL, + 4.25% YouTube Truist analyst Matthew Thornton started the action with a buy rating and price target of $ 78 saying he “liked the foundation” of the platform and that there were “important nascent opportunities to build on the basis. “Thornton said he thinks Roblox could be released on console platforms like Sony Corp.’s SNEJF, + 9.39% 6758, + 1.07% SONY, + 4.33% PlayStation and Nintendo’s 7974, + 0.64% Switch, which would further grow its base. Goldman Sachs analyst Michael Ng initiated a A buy rating on Roblox stock with a price target of $ 81. “Roblox’s faster growth, which should be driven by aging and international expansion, high incremental margins and growing profitability, justifies a premium multiple. relative to video game publishers, but a discount for pure game engines / platforms like Unity U, -0.24%, —Said Ng. Stifel Nicolaus analyst Drew Crum began hedging in mid-March with bullish support. FactSet has tracked six analysts who have signed up for Roblox so far, with universal ratings equivalent to “buy” and an average price target of $ 77.