Here is Why Roblox Corporation (RBLX) is Favored by Hedge Funds

Roblox Corporation (NYSE:RBLX) is one of the best communication services stocks according to Hedge Funds.

Ken Gawrelski of Wells Fargo reaffirmed his bullish stance on Roblox Corporation (NYSE:RBLX). Gawrelski assigned a Buy rating on January 8, with a downward revision of the target price from $141 to $107. Despite that, the stock currently offers around 40% upside to investors.

The analyst has predicted 26% growth in the coming year’s booking, ranging between $7.9 billion $8 billion in total. These forecasts are now more aligned with consensus estimates, and the first quarter will most likely generate the highest growth.

On December 10, B. Riley Securities analyst Drew Crum also initiated his coverage on Roblox Corporation (NYSE:RBLX). The analyst gave a Buy call with an estimated price target of $125, resulting in an impressive 64% upside potential.

Crum cited his bullish views on the company’s long-run fundamental prospects, which are backed by its advanced entertainment platform. Crum views Roblox Corporation (NYSE:RBLX) as leveraging the social and content effects of its platform that are mutually reinforcing.

Roblox Corporation (NYSE:RBLX) is a virtual communication and connection platform that enables a highly immersive digital experience for users from around the world. Its offerings include Roblox Client, Roblox Studio, and Roblox Cloud. These tools allow users and developers to connect, work, play, and socialize in a 3D infrastructure.

While we acknowledge the potential of RBLX as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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