Roblox's (RBLX) ongoing momentum is setting the company up for long-term growth, Oppenheimer said in a Wednesday note.

"Increasing content velocity, robust technology infrastructure, global reach, and a deep bench of under-utilized monetization features make RBLX a compelling investment, despite a 76% stock price increase since April 10," said the investment firm.

Oppenheimer noted the company's sustainable user growth momentum, the revenue potential of its rewarded video ads, and record-breaking Grow a Garden game. Oppenheimer expects further growth in the game's daily active users in the near term and projects a higher ad revenue growth over the near and long term.

Oppenheimer raised its price target on Roblox to $125 from $80 and reiterated its outperform rating.

Price: 102.76, Change: +1.64, Percent Change: +1.62