Roblox (NYSE:RBLX) stock is heading higher on Monday following bullish comments from BofA analyst Ryan Gee.
To start off with, Gee initiated coverage of RBLX stock at BofA with a buy rating. That has the analyst matching his peers at other firms with Roblox having a consensus buy rating. This comes from six buy ratings for the stock.
Of course, the BofA analyst didn’t stop there. His starting coverage of RBLX stock also comes with a price target of $78 per share. This actually has him slightly below the consensus price target of $80 per share for the stock. Even so, that price target still represents a potential 16% upside for the stock.
So why exactly is Gee taking such a bullish stance on RBLX stock? It all has to do with the company’s business model, which he claims is “unlike anywhere else in mobile.”
The analyst points to the unique nature of RBLX acting as an online marketplace for the game marketplace. That includes the ability to buy and sell in-game assets with money from other creators. This makes it similar to other game development platforms, such as Unity. However, the economics are closer to e-commerce stores, which give the company its own flair, reports TheFly.com.
With today’s news, RBLX stock has seen more than 3 million shares change hands as of this writing. For the record, the stock’s daily average trading volume is roughly 17 million shares.
RBLX stock was up 5.1% Monday morning but is only up about 1.8% since its IPO in March.
Investors that are interested in what else Roblox has to offer should keep ready.
While RBLX is still new to the public market, there’s already a wealth of coverage for the company. That includes deep looks into the stock from other writers at InvestorPlace.com. Readers can check this out for themselves below to get a better look at the stock.
More RBLX Stock News
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.