Citi Lowers Roblox (RBLX) PT to $119 Citing Peer Multiple Compression, Updated Model

Roblox Corporation (NYSE:RBLX) is one of the best IPO stocks to buy right now. On February 6, Citi analyst Jason Bazinet reduced the firm’s price target for Roblox to $119 from $152, while keeping a Buy rating. This adjustment reflects an update to the firm’s financial model following the company’s Q4 2025 results and accounts for recent multiple compression observed among Roblox’s industry peers.

On the same day, Piper Sandler lowered the price target for Roblox Corporation (NYSE:RBLX) to $100 from $125 amd kept an Overweight rating. The firm observed that the shares outperformed following a reported 63% year-over-year increase in bookings, which exceeded the firm’s estimates and were better than feared. Despite this growth, the firm noted a deceleration from the 70% year-over-year increase seen in the previous quarter.

Additionally, UBS lowered its price target for Roblox to $74 from $103 with a Neutral rating. The firm noted that the company’s Q4 2025 results were strong and the 2026 outlook exceeded expectations. Despite the anticipated positive reaction to these results, the firm argued that concerns regarding competition and the emergence of new AI platforms may continue to weigh on the stock.

Roblox Corporation (NYSE:RBLX) operates an immersive platform for connection and communication in the US and internationally.

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.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

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