Roblox (NYSE:RBLX) stock is on the move Wednesday as investors react to new coverage of the video game company’s shares from Wells Fargo.
Wells Fargo analysts initiated coverage of RBLX stock with an “overweight” rating. To put that in perspective, the analyst consensus rating for RBLX shares is moderate buy based on 22 opinions.
In addition to that, the company started its coverage of RBLX stock with a price target of $49 per share. That represents a potential upside of 16.6%. It’s also bullish next to the analyst consensus price prediction of $41.62 per share.
Why the Bull Rating for RBLX Stock?
Here’s what Wells Fargo analysts had to say about Roblox in a note to clients obtained by Investing.com:
“Similar to other audience platforms, we expect ads to become a significant earnings stream over time for Roblox, supported by strong user engagement […] See meaningful upside to consensus bookings and EBITDA as we believe the ads opportunity is underappreciated by the Street, which has yet to properly capture future ad bookings into forecasts.”
RBLX stock is up 2.5% as of Wednesday morning. This comes with more than 3.8 million shares traded. For the record, the company’s daily average trading volume is still above that at 10.5 million shares.
Investors who want more of the latest stock market news are in luck!
We’ve got all of the hottest stock market stories that traders need to know about on Wednesday! That includes everything going on with Palantir (NYSE:PLTR) stock, ReShape Lifesciences (NASDAQ:RSLS) stock and Pasithea Therapeutics (NASDAQ:KTTA) stock. You can find out more on these matters at the following links!
More Wednesday Stock Market News
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On the date of publication, William White did not hold (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.
