Roblox Corp (NYSE:RBLX) has had its price target reduced to $60 from $70 by Jefferies analysts, who pointed to what it views as demanding assumptions embedded in the company's 2026 bookings guidance.

The firm maintains a “Hold” rating on the stock, which is currently trading hands at about $58.

Jefferies noted that reaching the top end of Roblox’s 2026 bookings growth guidance would require a strong first-quarter performance followed by steady quarter-over-quarter growth for the rest of the year, which they consider unlikely.

They also observed that weekly engagement declined about 20% in the first quarter before stabilizing in March, a slower recovery compared with the previous quarter’s performance.

The firm adjusted its Q1 2026 bookings growth estimate to 48% year-over-year, while keeping its full-year 2026 forecast largely unchanged.

They highlighted that Roblox still trades at about 13 times 2027 EBITDA, positioning it “in-line with peers on a growth-adjusted basis,” though they noted it is “not yet outright cheap.”

Jefferies believes that first-quarter guidance appears conservative relative to the full-year bookings target. “Assuming historical quarter-over-quarter seasonality, a 44% Q1 result would require the remaining quarters to outperform historical growth by ~500 basis points each to reach the high end of FY26 guidance (26%),” they wrote.

The analysts also observed that engagement trends were uneven, with global mobile DAUs down roughly 10% quarter-over-quarter and concurrent users falling about 20% from early January to late March, before stabilizing.

The firm cautioned that while Roblox’s business is stronger than when the stock last traded below $60, it is still awaiting clearer evidence of sustained second-half 2026 growth and margin expansion in 2027 and beyond.