Wells Fargo initiated coverage of RBLX with an “overweight” rating
Wells Fargo believes the potential revenue from advertising on Roblox Corp (NYSE:RBLX) is underappreciated by the market. The Wall Street analyst initiated bullish coverage of the video game concern with an “overweight” rating and a $49 price target.
In response, RBLX is up 2.3% premarket, looking to open at $43 area for the first time since July. This quarter alone, the equity has tacked on more than 45%, helping it to a 47.7% year-to-date lead.
Coming into today, the brokerage bunch was mostly bullish, but there’s room for pessimism to unwind. This is because eight of the 21 covering brokerages rate Roblox stock a “hold” or “strong sell.” What’s more, the 12-month consensus target price of $41.88 is a slim discount to last night’s close, indicating more price-target hikes could come around.