Morgan Stanley upgraded RBLX to "overweight" and hiked its price target to $65
Roblox Corp (NYSE:RBLX) is 2.8% higher in premarket trading, after Morgan Stanley upgraded shares to "overweight" from "equal weight" and raised its price target to $65 from $38. In its bull note, the analyst said the video game developer's growing audience could help RBLX more than double.
In addition to Morgan Stanley's upgrade, Roth MKM and Deutsche Bank hiked their price targets to $54 and $60, respectively. There's room for more upgrades too, considering nine of 24 covering brokerages rate the equity a "hold" or worse.
The options pits are even more bearish. This is per RBLX’s 50-day put/call volume ratio at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which stands higher than 99% of annual readings. Echoing this, the security's Schaeffer's put/call open interest ratio (SOIR) stands higher than 91% of readings from the past 12 months.
Coming into today, Roblox stock was up 12.5% since the start of 2024. Shares secured a sixth-straight daily win last week, a 19.9% gain on Oct. 31 after the company beat third-quarter revenue estimates. That bull gap sent RBLX to its fifth-straight monthly win, pushing it 53.3% higher over the last 12 months and back above the $48 level for the first time since September.