Roblox Upgraded to Outperform Amid Challenges, Price Target Set at $150

NEW YORK, NY — Roblox Corp received a significant boost on August 22, 2025, from analyst Shweta Khajuria of Wolfe Research. She upgraded the gaming platform to ‘Outperform’ and set a price target of $150. This comes during a challenging month for Roblox, which has faced increased scrutiny and rumors of potential shutdowns.

Khajuria’s optimistic outlook is grounded in Roblox’s potential to capitalize on a content flywheel and a large addressable market. She highlighted new revenue streams expected from advertising and regional pricing as vital factors for the company’s growth.

The analyst noted Wolfe Research’s projections for 2026, raising their estimates for bookings by 7% and EBITDA by 13%. These projections suggest that regional pricing could add approximately $318 million in bookings, while advertising could contribute around $300 million in gross revenue.

Khajuria emphasized the benefits of Roblox’s platform flywheel effects, which include improved search and discovery, faster content creation, and pricing optimizations. Additionally, she pointed to the company’s exploration of new gaming categories and AI-driven content as crucial elements that could enhance user engagement and revenue.

Currently, Roblox aims to grow its user base from 112 million to one billion daily active users. Although the future looks bright, Khajuria mentioned some risks, including stock-based compensation and safety controversies. However, she believes these factors have not historically impacted the company’s fundamentals.

Recently, Roblox’s stock has shown volatility amid ongoing rumors of shutdowns and safety issues. Despite this, the company has refuted the shutdown rumors, asserting its commitment to user safety. The Wolfe Research upgrade arrives at a critical moment for Roblox, which faces legal challenges and international bans tied to safety protocols.

As of now, Roblox stock is trading at approximately 36 times its 2026 EBITDA, a figure that remains lower compared to other gaming and internet peers on a growth-adjusted basis.