-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
We trim our 12-month target price by $39 to $70, applying an EV/Revenue multiple of 5.2x to our '27 estimate, a discount to its ten-year historical average multiple at 7.6x. We move our '26 loss estimate to $1.48 from $1.50 and move '27's loss to $1.26 from $1.48. The introduction of global age checks for chat access led to reduced communication engagement. This restriction affected both users who have age checked and those who have not, as age check is now required for communication. Adults are no longer allowed to communicate with users under 16, further limiting interaction across age groups. RBLX observed a reduction in app store ratings, which they believe is contributing to a decrease in organic sign-ups that typically originate from app stores. This change is associated with the effects of age checking and discovery algorithms being weighted more toward monetization. This has resulted in a revision of full-year financial guidance, lowering expected top-line growth for revenue and bookings.