12:24 PM EDT, 05/01/2025 (MT Newswires) -- Roblox ( RBLX ) presents a "compelling growth opportunity" in the video game industry with its expanding user base and product pipeline, while the company taps into profit drivers like monetizing non-payers via advertising, Wedbush analysts said in a Thursday report.

The company's rewarded video ad format collaboration with Alphabet's (GOOG, GOOGL) Google ( GOOG ) positions it to ramp ad revenue growth starting Q2. Roblox's ( RBLX ) decision to offer content partners a higher revenue share on in-app purchases will attract higher-quality content to the platform, the analysts said.

"With the recent announcement of rewarded video ads, we expect to see a guide for advertising contribution at some point this year, likely creating Roblox's ( RBLX ) next catalyst event," the analysts said.

Wedbush said it modeled 20% year-over-year growth in fiscal 2025 through fiscal 2027, in line with Roblox's ( RBLX ) more than 20% growth guidance.

The brokerage said it reiterated its outperform rating on the stock and increased its price target to $91 per share from $83.

Price: 69.09, Change: +2.04, Percent Change: +3.04