Roblox (RBLX) is taking deliberate steps to build on its re-expansion opportunity, with investment spending accelerating to support growth, Wedbush Securities said in a Monday note.

Analysts said the company made a crucial decision to increase child safety features on its platform, helping it avoid regulatory scrutiny in many global markets.

Wedbush said that crucial steps for the company are retaining current developers and bringing new ones aboard, improving game discovery and player engagement through its "Roblox Everywhere" and "Roblox Offline" initiatives, and converting that engagement into monetization.

Analysts said, however, that they need more on Roblox's monetization capabilities, especially on the timeline for its new initiatives to show up in bookings. Wedbush also noted a near-term monetization hit from the shift in Roblox's discovery algorithm toward long-term retention, before turning more constructive.

Wedbush retained a neutral rating on the stock and increased its price target to $48 from $40.

Shares of Roblox were up 9.9% in Monday trading.

Price: 49.98, Change: +4.48, Percent Change: +9.85