Robinhood Looks Beyond Meme Stocks as Analysts Revise Views on Growth

what happened

According to Barron's, Robinhood Markets shares are down 12% this year but have risen about 52% from their March low of $65.15. Rosenblatt analyst Chris Brendler started coverage with a Buy rating and a $135 target, implying roughly 37% upside from Tuesday's close. He called Robinhood a "generational growth story" that "deserves premium valuation," pointing to its shift into a broader financial platform.

J.P. Morgan raised its target to $115 from $103 and kept a Neutral rating, lifting its third-quarter adjusted earnings estimate to 57 cents a share from 46 cents. The bank cut the multiple it uses to value the stock to 32 times from 35, citing growth concerns and competition. Mizuho, citing a survey of more than 600 users, said 94% would likely trade perpetual stock futures if offered, and about 84% would mostly use new money.

why it matters

The key point for the market is that Robinhood is trying to grow through prediction markets, financial products and international expansion, not only commission trading. If the new products draw fresh deposits, that would support revenue. Third-quarter results are due October 27, which will show whether these expectations hold.

market impact

HOOD: new products and deposit inflows could support the broker's shares, while competition and profitability remain open questions

tags

instruments