Roblox downgraded to Underperform from Peer Perform at Wolfe Research - InvestingChannel

Roblox downgraded to Underperform from Peer Perform at Wolfe Research

Wolfe Research analyst Gal Munda downgraded Roblox to Underperform from Peer Perform with a $24 price target. The company’s “disappointing” November metrics potentially provide concern in company execution, Munda tells investors in a research note. The analyst believes consensus estimates for bookings growth over the near-to-medium term are high, and that it is too early to model the potential contribution from Roblox’s advertising opportunity as “many questions remain in terms of how the mechanics of advertisements can seamlessly work in the virtual platform.” On the back of weak November metrics that seemed to have been contrary to management expectations, the dynamic among the investor base “will shift and leaves room for downside from current levels,” writes Munda.

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