© Reuters Clear potential benefits for Roblox (RBLX) from AI tools says Morgan Stanley

Morgan Stanley revealed it hosted a non-deal roadshow (NDR) with Roblox Corp (NYSE:) CTO Dan Sturman and CFO Mike Guthrie, focusing on the company’s AI initiatives/investments on Wednesday.

The investment bank’s analysts, who have an underweight rating and $26 price target on the stock, said that explained that while the firm maintains a cautious view on RBLX this year, they see “clear potential benefits over the long term as AI tools could empower creators to make more/stronger content and ultimately drive higher engagement and monetization for RBLX.”

“At a high level, we believe that RBLX can benefit from putting AI-based tools in the hands of its creators, since the company will ultimately see upside from any improvements to engagement and monetization that follow,” the analysts wrote.

Elsewhere, Oppenheimer also released a note following the event, with analysts, who have a Perform rating on the stock, saying the “primary takeaway is the democratization of creation.”

“To build an experience on Roblox, developers need to be skilled in either coding or art. However, management’s goal is to remove the skill required for users to create and thus, broadening its community of creators. RBLX recognizes that better, higher quality experience draws more engagement, which results in better monetization,” explained the analysts.