MoffettNathanson Maintains Neutral Rating on Roblox, Highlights AI-Driven Ambitions

MoffettNathanson analysts reaffirmed their Neutral rating on Roblox Corp. (NYSE:RBLX) with a price target of $31. The analysts' valuation framework is based on a multi-year discounted cash flow (DCF) model, factoring in the impact of stock-based compensation and assigning a 26x adjusted unlevered free cash flow multiple for 2028. The analysts also highlighted Roblox's deep investment in artificial intelligence, particularly generative AI, to enhance content creation on its platform.

Tools like Roblox Studio and features such as Roblox Party are designed to improve user experience, especially on lower-spec mobile devices in developing regions, while fostering the platform's social ecosystem. Despite current challenges, Roblox continues to aim high, with aspirations to capture 10% of the global video game content market—a goal that would rival major industry players like PlayStation and surpass Nintendo.