Roblox (RBLX) Q2 user growth is expected to "turbocharge a seasonally strong" Q3, Oppenheimer said Friday in a note.
New and reengaged users from Q2 are expected "to stay and help drive growth in other experiences," thanks to the company's improved search and discovery functions, the note said.
Oppenheimer forecast Q3 bookings growth of 45%, topping the 22% consensus and boosted the stock's price target to $133 from $125, while maintaining the outperform rating.
"It's less clear how management will approach Q3 guidance" and how growth should be modeled amid expectations that Q2 bookings growth will top guidance and consensus, the note said.
Roblox is expected to report Q2 results on Thursday.
The company's shares rose 2.7% in recent Friday trading.
Price: 121.33, Change: +3.21, Percent Change: +2.71