11:12 AM EDT, 08/25/2025 (MT Newswires) -- Roblox ( RBLX ) remains the most compelling growth opportunity in the video game sector amid a slew of recent and forthcoming hit pieces and legal action, Wedbush said in a note Monday.

"We expect some ongoing volatility in Roblox's ( RBLX ) share price when new hit pieces or legal action surface," the report said.

"However, Roblox ( RBLX ) continues to be quick to respond, with meaningful actions it has taken and plans to create a safe and engaging environment across its age cohorts," it added.

The report also pointed to its Q3 guidance bookings growth of 41% to 45% from a year ago, underscoring the flywheel effect.

"Roblox ( RBLX ) is in the early stages of unlocking value from games and advertising on the platform," the note said, adding that operating leverage is just beginning to accelerate.

Wedbush kept its outperform rating and a $165 price target.

Price: 127.36, Change: +9.84, Percent Change: +8.37