Wolfe Research upgraded shares of Roblox (RBLX) to Peer Perform from Underperform in a note Friday following the company’s Investor Day.

Analysts said RBLX provided more color on its long-term financial framework and more details on its advertising opportunity at its Investor Day yesterday.

The firm said it is upgrading the stock as it has “increased confidence in durable bookings growth and margin expansion.”

“We initially downgraded RBLX to Underperform as we believed bookings growth expectations were too high, that expectations around the advertising opportunity were too early, and that meaningful operating leverage was still a ways away. However, after yesterday’s Investor Day, we walked away from the event with our concerns eased,” explained the analysts.

The firm’s concerns were eased due to management beginning to provide quarterly and annual guidance next quarter, which they believe will keep investor expectations for key metrics in check. In addition, during the Investor Day event, RBLX management disclosed that over the long term, the ad opportunity could be a $1B business. Furthermore, Wolfe Research note that RBLX management expects the rate of headcount growth to slow.