Jefferies downgrades Roblox to 'underperform'; shares fall 3%
RBLX•Roblox shares fell 3% premarket after Jefferies downgraded the stock to “underperform” from “hold.” Jefferies said improving user and bookings growth in the US and Canada may take longer and cost more than the market expects.
1. Jefferies rating change
Jefferies said it is positive on Roblox’s focus on expanding its platform to support new genres and users aged 18 and older, but expects improvements in US and Canada user and bookings growth to take longer and cost more than the market expects. The firm added that recent viral games such as Steal an Egg are unlikely to bring incremental audiences to the platform.
2. Analyst views
Data compiled by LSEG showed 38 analysts rated Roblox “hold” on average, with a median price target of $47. The stock had fallen about 43% year to date through the prior day’s close.
