10:29 AM EDT, 04/10/2025 (MT Newswires) -- Roblox ( RBLX ) is well positioned to outperform the video game sector in bookings growth and margin expansion, driven by its technology infrastructure, untapped monetization potential, and unique user growth momentum, Oppenheimer said in a Thursday note.

The firm highlighted strong near-term trends, with average concurrent user growth in Q1 tracking at 30% year over year, ahead of 25% in Q4, suggesting bookings will likely surpass management's 22% guidance.

Oppenheimer also expressed increased confidence in Roblox's ( RBLX ) programmatic video ads strategy, citing the Google Ad Manager partnership as a catalyst. Oppenheimer expects ad revenue to reach a $100 million run rate by Q4.

The platform's recent large-scale event, The Hunt: Mega Edition, received mixed feedback but helped break all-time records for concurrent users. Oppenheimer expects continued experimentation with such events to support long-term engagement.

Oppenheimer upgraded Roblox ( RBLX ) to outperform, with a $70 price target.

Shares of Roblox ( RBLX ) were down 3.1% in recent trading.

Price: 55.54, Change: -1.77, Percent Change: -3.09