Here’s how Wall Street analysts reacted to Roblox’s Investor Day

Roblox (RBLX) held its 2023 Investor Day on Wednesday, covering a wide range of topics from product innovations to long-term guidance.

Here’s how Wall Street analysts reacted:

BTIG analysts maintained a Buy rating and $48 per share price target on Roblox, stating they came away “initially with a clearer understanding of new product drivers, how Roblox plans to expand and improve its advertising operation.”

“Framework for Bookings growth and margin improvement points to upside vs. consensus expectations, while also seeming very reasonable in terms of the ad ramp and core margin trajectory,” they added. “Roblox also checked a very important box for investors with forward guidance and insights into the underlying drivers that provides a level of medium-term visibility that had been lacking previously.”

Morgan Stanley, which has an Equal Weight rating and a $30 price target on the stock, said the company reported a strong long-term guide.

“At the ’23 investor day, new long-term guidance surprised to the upside on bookings and came in line with expectations for margin expansion. We also got a clearer vision of the ads/shopping road map through ’25, which are the key product areas to monitor from here, along with RBLX’s Al investments,” said the investment bank’s analysts, who added that key hurdles to scaling the ads business remain ahead.

Citi analysts, who maintained a Buy rating and $51 per share price target on the stock, said they believe there is scope for consensus estimates to move up.

“Overall, we are encouraged by what we heard during the Investor Day,” they wrote.

Roblox shares are down more than 4% so far in Thursday’s session.