The price target indicates 20% potential upside from Monday's close at $71.08. Shares of Roblox at last check were 3% lower at $68.97.
The investment firm sees the San Mateo, Calif., company as offering investors exposure to multiple growth megatrends, including mobile gaming, social networking, user-generated content and digital identity.
"While pandemic restrictions have led to outsize increases in daily average users and average revenue per daily active user, we expect a more steady 'up and to the right' progression from here, with occasional step-functions higher as the company improves technology and unleashes more tools for creators," said analyst Alexia Quadrani.
J.P. Morgan says that increasing scale in daily active users and improving technology may open up new revenue lines.
Those new revenue lines include advertising, as almost two-thirds of Roblox users are below age 17 and spend more than 2.5 hours a day on the platform, according to J.P. Morgan.
"We believe execution on this model alone can drive steady long-term returns for investors, with significant optionality tied to several drivers, including advertising, e-commerce, and the wider Metaverse opportunity," Quadrani said.
The company received a flurry of positive analyst initiations last month, about a month after it went public.
Roblox went public through a direct listing in early March, listing 199 million shares at a reference price of $45 each.
The company is set to report first-quarter earnings on Monday, May 10, after the market closes.