Why Analysts Raised Price Targets on Roblox Corp.

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FILE PHOTO: The Roblox logo is displayed on a banner, to celebrate the company's IPO at the NYSE is seen in New York

Investors may want to keep an eye on Roblox Corp. (RBLX).

Over the last few days, the stock pulled back on a wider than expected Q2 loss, and news bookings fell 4% year over year.  For the quarter, the company lost $176.4 million, or 30 cents a share, which was wider than the expected loss of 25 cents.  Bookings fell to $639.9 million, which was below expectations for $657.2 million.

However, don’t write the gaming stock off just yet.

Morgan Stanley just raised its price target on RBLX to $32 from $25, with an equal weight rating on the stock.  As noted by TheFly.com: The company’s Q2 results were mixed, but July bookings were “a relative bright spot” as bookings reaccelerated to 10% year-over-year growth that he calls out as the highest year-to-date.

Wedbush also raised its target to $34 from $28, and noted that the company did deliver a solid end to the second quarter, coupled with a promising start to the third quarter.

Technically, after dipping to $42.50, the RBLX stock is recovering.  It last traded at $49.56.