By Sam Boughedda
Investing.com — Roblox Corp (NYSE:RBLX) stock is down Wednesday after Morgan Stanley slashed its price target on the stock to $32 from $65, keeping an Equal Weight rating on the shares.
Analyst Brian Nowak said in a note to clients that they continue to see negative revisions ahead and believe a return to North America user growth and a product-driven reacceleration will be necessary to boost the company’s 2022 outlook and the multiple investors will pay.
“We believe RBLX’s YTD results speak to larger than expected headwinds and forward growth uncertainty through reopening. February results (avg. bookings per DAU down 25% y/y and 8% sequentially) reinforced these challenges, as the company expects slower growth could continue until 2H:22,” wrote Nowak.
The analyst said they expect this year to remain an investment year for the company, and they will begin to turn positive if they see “evidence of innovation-driven faster than expected engagement and/or monetization.”
Roblox stock is down 3.59% Wednesday.
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Source: https://finance.yahoo.com/news/roblox-price-target-cut-morgan-105600292.html