B Riley Kicks Off Coverage on Roblox and Take-Two With Bullish Price Targets

B Riley Securities has stepped into the gaming arena with fresh coverage on Roblox (NYSE: RBLX) and Take-Two Interactive (NASDAQ: TTWO), tagging both with Buy ratings. Their thesis leans heavily on Roblox's rising share of the global gaming market and Take-Two's much-anticipated Grand Theft Auto VI release scheduled for late 2026.

For Roblox, B Riley has pegged a price target of $125, suggesting a hefty 30%+ upside from current levels given recent pullbacks. The brokerage underscores Roblox's role as a leading next-gen entertainment platform, with a unique edge via user-generated content and active social engagement, likening its model to YouTube's viral content discovery. The success of titles like "Grow a Garden" in 2025 exemplifies how quickly the company's hits can shift market sentiment.

Despite some short-term headwinds due to cautious guidance and ongoing investments in key areas like trust and safety, AI innovation, and infrastructure, these moves are seen as foundational for future growth. Notably, Roblox's ambition to increase its global games market footprint from roughly 3% to 10% signals aggressive expansion plans. B Riley values the stock at under 11 times expected 2026 bookings, which suggests a relatively moderate valuation given growth prospects.

On the other side, Take-Two gets a price target of $300 from B Riley, eyeing just over 20% upside potential driven by the blockbuster Grand Theft Auto VI release. The brokerage calls this the "biggest entertainment launch in history," forecasting it to ignite record sales starting in fiscal 2027. Beyond GTA VI, Take-Two's pipeline includes annual NBA 2K editions, fresh intellectual property like "Judas," and a push into mobile gaming.

Recurrent consumer spending growth-bolstered by mobile platforms, virtual currency in NBA 2K, and a rebound in GTA Online activity-is projected to top 10% annually from fiscal 2026 through 2028. B Riley also points out Take-Two's status as the last major independent U.S. gaming publisher adds a layer of scarcity value with ongoing chatter around potential deals or acquisitions.

The brokerage's projections have Take-Two's fiscal 2027 profits surpassing prior peaks, marking a strong turnaround from current levels. Both companies appear poised for significant moves within the gaming sector, albeit on different trajectories-Roblox through social gaming and content creation, Take-Two through blockbuster AAA titles and franchise growth.

Given the evolving dynamics in gaming, with new releases and user engagement strategies shaping revenue streams, the market's reaction to these forecasts will be an interesting space to watch over the next year. For now, both Roblox and Take-Two stand out as names to follow among gaming stocks.