Roblox (RBLX) Surges 8% with Wedbush price target of $165

Roblox Corp. (RBLX) saw its share prices surge by 8% on Monday, closing at $124.81 per share after an investment firm praised it as a top growth opportunity in the video game sector. Wedbush has maintained an “outperform” rating and a price target of $165 for RBLX due to its hit games and potential for growth.

Wedbush’s price target for Roblox represents a 32% upside potential from its latest closing price. The firm also noted that Roblox’s expansion into new genres and older demographics has increased potential for advertising opportunities and improved revenue streams through pricing optimization.

Despite legal challenges, Wedbush highlighted Roblox’s track record of responding quickly to ensure a safe environment for all users. While RBLX shows promise as an investment, Wedbush believes that other AI stocks may offer higher returns with limited downside risk.