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Roblox Rises as Truist Sets Wall-Street-High Price Target

Truist Securities raised its price target on Roblox to a Wall-Street-high $103 from $83, estimating that second-quarter bookings would exceed consensus.

Shares of Roblox  (RBLX) - Get Roblox Report advanced Tuesday after Truist Securities raised its price target on the stock to a Wall-Street-high of $103 from $83 and estimated that second-quarter bookings were likely to come in at least 5% higher than consensus.

Shares of the San Mateo, Calif., company at last check rose 0.75% to $94.47.  Roblox shares touched a 52-week high $98.95 on Friday. 

Truist said second-quarter bookings "look to be tracking at least mid-single-digit-percent above consensus (upwards of low-double-digit-percent)."

Bookings are a non-GAAP measure of the amount of virtual currency users purchase in a given period, according to the company's statement.

The investment firm said that "2021 consensus looks like a low hurdle. We expect the company provide a monthly update [in] the second week of June. 

"Beyond numbers, the focus is likely to remain China, new features/platforms and new branded experiences."

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Roblox expects June quarter bookings between $500 million to $525 million, representing year-over-year growth of 1% to 6%.

For full-year 2021 Roblox expects bookings between $2 billion to $2.13 billion, the company said.

Roblox has 8 buy ratings and no hold or sell ratings, with an average price target of $88, according to data from Bloomberg News.

The company early in March went public via direct listing, avoiding a traditional IPO. 

On May 10, Roblox reported its first financial results after listing on the stock market and posted better-than-expected bookings on a surge in daily users.

The company said bookings in the first quarter hit $652.3 million, better than the $573 million consensus forecast compiled by FactSet. 

Average daily active users during the quarter were 42.1 million, an increase of 79% year-over-year.