Bank of America Securities reiterated its Buy rating for Roblox Corp. on Tuesday. The firm maintained a $165 price target for the stock. Analysts argue that the market remains overly pessimistic regarding the company's growth prospects.
Current stock valuation sits at an all-time low multiple of 18 times next-twelve-month EBITDA. BofA suggests this price already reflects a worst-case bear scenario.
Analyst Omar Dessouky noted that many investors doubt the company can achieve its 2026 growth outlook. BofA considers this doubt misplaced and anticipates a more probable bull case outcome.
Strong organic growth and the retention of users from 2025 hit games support this optimistic view. The bank expects a consistent flow of new breakout experiences on the platform. Roblox shares traded at $56.84, significantly below the 52-week high.