Wall Street expectations – Roblox (RBLX) – Get Report shares rose Tuesday after Truist Securities raised its price target to a Wall-Street-high of $103 from $83 and forecast second-quarter bookings to be at least 5% higher than consensus estimates. At last check, the company’s shares were trading at $94.47, up 0.75%. As of Friday, Roblox shares were trading at $98.95, a 52-week high.
The company said bookings for the second quarter were “at least a mid-single-digit-percent above consensus (high double-digits)”. Bookings measure how many virtual currencies users purchase in a period based on the company’s statement. Investing firm reports that “2020 consensus looks like a low hurdle. We anticipate the next monthly update to be provided [by] the second week of June.
What’s more in the Wall Street Expectations?
Besides numbers, a focus on new features and platforms and the creation of branded experiences are likely to remain.”
A year-over-year increase of 1% to 6% is expected for Roblox’s June quarter bookings. It is in estimate that Roblox will book between $2 billion and $2.13 billion in bookings for the entire year of 2021.
Reuters data shows the average price target for Roblox is $88, with eight buy ratings and no hold or sell ratings. A direct listing was used early in March instead of a traditional IPO for the public offering. A surge in daily users drove Roblox to post better-than-expected bookings on its first financial report following its initial public offering. It is required for such offer only in such case.
The company reported $652 million in bookings for the first quarter despite the analyst consensus of $573 million. The number of daily active users during the quarter increased by 79% year-over-year to 42.1 million. Therefore it is very important.
According to Truist Securities, bookings will exceed consensus estimates for Roblox in the second quarter, pushing its price target to a Wall Street-high $103 from $83.