11:17 AM EDT, 08/01/2025 (MT Newswires) -- Roblox ( RBLX ) stock has the "most compelling" growth opportunity in the video game sector due to hit games, platform growth, genre expansion that raises ad inventory potential, and pricing improvements across the market, Wedbush said in a note Friday.

"We believe that there is a significant flywheel effect, as we can already see in Q3 as multiple games have gone viral vs. one last quarter, while Roblox ( RBLX ) is in the early stages of unlocking value from games and advertising on the platform," analysts wrote.

Wedbush said Roblox ( RBLX ) posted a record Q2, with bookings up 50% from last year, and guided for Q3 bookings growth of 41% to 45%.

Popular titles like "Grow a Garden" and "Steal a Brainrot" fueled results, but more than half of the spending growth came from games outside the top 10, pushing daily active users to 111.8 million and engagement hours to 27.8 billion, according to the note.

The firm adjusted its estimates as it projected double-digit growth for Roblox ( RBLX ) through fiscal 2027, though year-over-year gains may slow in fiscal 2026 considering a tough comparable period.

Wedbush raised its price target to $165 from $142, and maintained an outperform rating on the stock.

Shares of the company were down more than 5% in recent trading Friday.

Price: 130.65, Change: -7.14, Percent Change: -5.19