In advance of the company’s fourth-quarter results report, Bank of America reaffirmed its Buy rating and $54.00 price target for Roblox Corp (NYSE: ROBX).Roblox will report 4Q22 results on Wednesday, February 15, prior to the opening of the market.
Analysts anticipate that the online gaming platform’s EBITDA margin will be above the 10% level announced by management in November, as bookings for the fourth quarter were driven by December’s outperformance and likely exceeded the company’s forecasts.
Bank of America does not anticipate that Roblox will issue guidance, but analysts anticipate some indication of the company’s growth outlook for the year relative to rates exiting 2022. There are many things that could move the stock in 2023, and management could talk about any of them on the conference call.
The analysts added in a note, “We expect management to cite improvement across all core areas (US/Canada, Europe, East Asia), an ageing playyear overand anar.er basein theand increase in contentcommunitiesloper community as significant ” rowth drivers. After two quarters in whshrankeyear over yeartric shrunk Y/Y, we anticipate that average bookings per hour in North America will be at least flat Y/Y. Roblox demonstrated in the previous quarter that it could continue to enter its most mature market, North America. “We anticipate a solid January bookings total based on December’s excellent performance, a number of Game Fund releases towards the end of the fourth quarter, and the fact that Roblox and two of its most popular experiences seemed to establish records for concurrent users.”
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On Monday at midday, RBLX shares were up 0.73 percent.