Roblox (NYSE:RBLX) stock is getting a boost on Friday after the video game company’s shares got an upgrade.
Jefferies analyst Andrew Uerkwitz is behind today’s news. He upgraded shares of RBLX stock from a “hold” rating to a “buy” rating. To put that in perspective, the analysts’ consensus rating for the shares is “hold.” That’s based on 26 analyst opinions.
Included in that upgrade is an increased price target for RBLX stock. This has Uerkwitz increasing his price target for the shares from $30 each to $48 each. That’s a bullish price target next to the analysts’ consensus of $37.75 per share. It also represents a potential upside of 20.3% compared to yesterday’s closing price.
What’s Behind the Bullish RBLX Stock Rating?
Here’s what the Jefferies analyst said in a note to clients obtained by CNBC:
“We are upgrading RBLX on a favorable narrative (top line growth w/ margin inflection & an advertising option) supported by strong net bookings expansion and underlying user metrics. With regular rollouts of new user and creator features, we are comfortable RBLX will grow through NT competitor and macro pressures. We expect it to remain among the fastest growing internet companies earning multiple expansion, higher estimates, and investor interest.”
RBLX stock is up slightly as of Friday morning.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.