Roblox (RBLX) has set "conservative" guidance for Q3 and Q4, and is likely to beat expectations, especially on bookings and margins, BofA Securities said in a note Monday.

Expectations for Q3 and Q4 are high, but they may not matter much as what really matters to investors is Roblox's long-term growth and profit outlook, which should continue to attract marginal buyers, the analysts said.

The stock is likely to perform well at least until the company gives its 2026 guidance in early 2026, unless there is negative third-party data in the meantime, BofA said.

The online game platform is scheduled to report Q3 results before the opening of the US markets on Oct. 30.

The analysts said that despite high expectations, the setup for Q3 remains "favorable." Roblox guided to over 45% bookings growth, assuming top games would slow, but investor sentiment suggests stronger performance. They added that they see "significant upside risk" to their 23% EBITDA margin estimate, though this could be slightly offset by higher hiring.

The analysts said that Q4 guidance looks "conservative," with only a $50 million sequential bookings increase, well below past seasonal trends. The company is assuming that its biggest games will normalize in Q4, but this opens the door for potential outperformance versus consensus forecasts, which are currently at Street's +33% and BofA's +30% year-over-year growth.

The analysts added that while detailed 2026 guidance is not likely yet, they expect early signals on how Roblox plans to tackle tough comps next year.

BofA has a $171 price target on Roblox and is maintaining its buy rating on the stock.

Price: 132.68, Change: -0.24, Percent Change: -0.18