BMO Lifts Roblox (RBLX) Target to $160 from $150, Keeps Outperform

Roblox Corporation (NYSE:RBLX) is one of the best stocks to buy according to Jim Simons’ Renaissance Technologies. On October 2, BMO Capital lifted its price target on Roblox Corporation (NYSE:RBLX) to $160 from $150, while maintaining its “Outperform” rating. The firm cited strong engagement metrics that prompted it to increase its estimates for Roblox’s third- and fourth-quarter 2025 bookings.

BMO Capital performed an analysis on the growth of user-generated content (UGC) video game developers such as Fortnite. As a result, the analysts stated that the economics they (competitors like Fortnite) offer to incentivize creators to build on their platforms trail Roblox’s.

The analysts highlighted Roblox’s recent increase in developer revenue share, where it cautioned that it was likely a one-time event rather than a recurring annual trend. BMO added that competitive pressures could force Roblox to further shift economics toward developers over time, adding risk pressure to its long-term margin profile.

Roblox Corporation (NYSE:RBLX) is an interactive entertainment company. It operates an immersive platform that enables users to create, share, and experience 3D virtual worlds and games. Its ecosystem includes Roblox Client, Roblox Studio, and Roblox Cloud. The company generates revenue primarily through the sale of Robux, its virtual currency used for in-game purchases and premium content.

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Disclosure: None. This article is originally published at Insider Monkey.