Shares of gaming platform Roblox jumped 7.1% in morning trading.
J.P.Morgan upgrades to "overweight" from "neutral" and raises PT to $48 from $41.
JPM believes RBLX has significant monetization opportunity ($0.06 per hour with 80% of hours not monetized) and expects free cash flow to compound over 40% through 2027.
Says this is a compelling entry point for a co growing bookings over ~20%, exiting a heavy investment cycle and ramping two new revenue streams in advertising and commerce.
Average rating of 31 brokerages covering RBLX is "buy", median PT is $50.55.
Stock down 25.5% YTD.
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