In recent trading, shares of Roblox Corp (Symbol: RBLX) have crossed above the average analyst 12-month target price of $47.05, changing hands for $51.72/share. When a stock meets an analyst’s target price, they typically have two options: downgrade their valuation or raise the target price. The decision often hinges on the latest business developments that may be responsible for the stock’s rise. If the company’s outlook appears positive, a price adjustment may be warranted.
Currently, there are 22 different analysts contributing to the average target price for Roblox Corp, but this figure is merely an average of varying opinions. For instance, one analyst has set a lower target at $29.00, while another projects a much higher target of $60.00. The standard deviation of these targets is $7.593.
The reason investors focus on the average target price is to leverage a “wisdom of crowds” approach, combining the insights of multiple analysts instead of relying on a single expert opinion. With Roblox crossing the average target price of $47.05/share, investors are prompted to assess the company more closely. Is $47.05 merely a stepping stone toward a higher valuation, or has the stock become overvalued, signaling it might be time to secure profits? Below is a table illustrating the current thoughts of analysts covering Roblox Corp:
| Recent RBLX Analyst Ratings Breakdown | ||||
|---|---|---|---|---|
| » | Current | 1 Month Ago | 2 Month Ago | 3 Month Ago |
| Strong buy ratings: | 14 | 14 | 14 | 14 |
| Buy ratings: | 1 | 1 | 1 | 1 |
| Hold ratings: | 8 | 8 | 8 | 8 |
| Sell ratings: | 0 | 0 | 0 | 0 |
| Strong sell ratings: | 1 | 1 | 1 | 1 |
| Average rating: | 1.88 | 1.88 | 1.88 | 1.88 |
The average rating in the table ranges from 1 (Strong Buy) to 5 (Strong Sell). This analysis relied on data from Zacks Investment Research via Quandl.com. For further insights, consider obtaining the latest Zacks research report on RBLX — FREE.
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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
