Jefferies reduced its price target for Roblox Corp. to $85 from $100. The firm maintained a Hold rating on the stock.
The decision stems from cautious sentiment ahead of the company’s fourth-quarter results. Jefferies expresses apprehension that the fiscal year 2026 guidance could reset expectations. Investors worry that bookings growth may fall below the long-term guidance of over 20%.
These concerns persist despite Roblox reporting significant revenue growth over the last twelve months. The report notes that user trends remained stable in recent months, which may de-risk near-term quarterly results.
However, uncertainty in the second half of the year is expected to continue influencing stock performance. Shares declined significantly following the third-quarter 2025 earnings report, driven by these ongoing growth and margin concerns.