Jefferies Assumes Coverage on Roblox with Hold Rating, $42 Price Target, and 6% Upside

Jefferies has assumed coverage on Roblox (RBLX) with a Hold rating and a price target of $42, down from a previous target of $51. The analysts highlight Roblox's strong position as a leading platform for user-generated content among the 8-13 year old demographic. However, they caution that growth and margin expectations are lofty. Roblox's stock price was $39.66 at the time of the rating, which suggests a 6% upside based on the new price target. The FactSet average target for Roblox is approximately $41, with a range of $25-60. Additionally, Roblox showed strong performance, closing up 5% on July 12.