On Tuesday, Keefe, Bruyette & Woods updated their outlook on Robinhood Markets (NASDAQ:HOOD) shares, increasing the price target to $60 from the previous $38 while maintaining a Market Perform rating. The adjustment follows Robinhood’s recent earnings report, which surpassed expectations.
The firm’s analyst, Kyle Voigt, noted that Robinhood’s earnings per share (EPS), excluding non-core one-time items, would have been $0.54, outperforming Keefe, Bruyette & Woods’ estimate by $0.05 and the consensus by $0.12. This "core" beat was attributed to a $0.04 increase in revenues and a $0.01 decrease in stock compensation. Voigt highlighted that the strong transaction revenues were anticipated in their February 2 note concerning Robinhood’s 606 filing.
Voigt also remarked on the company’s focus during their earnings call, which centered on recent and upcoming product launches. He mentioned that the raised estimates and price target are based on continued strength in trading volumes quarter-to-date and growth in client balances, which are expected to drive net interest revenues higher.
The analyst’s commentary reflects a favorable operating environment for Robinhood in the first quarter. The increase in the price target reflects the firm’s recognition of Robinhood’s performance and potential revenue growth, despite maintaining a Market Perform rating on the stock.
Investors and market watchers will be keeping an eye on Robinhood’s stock performance and the company’s ability to sustain the positive momentum indicated by the analyst’s revised estimates. The stock has delivered an impressive 75.2% return year-to-date, though InvestingPro analysis suggests current valuations may be stretched. For deeper insights into Robinhood’s valuation and growth prospects, including 8 additional ProTips and comprehensive financial analysis, check out the full Pro Research Report available on InvestingPro.
In other recent news, Robinhood Markets and Bitcoin have been making significant strides according to various analyst notes. Bernstein analysts have acknowledged the ongoing Bitcoin bull market, driven by factors such as the successful launch of a Bitcoin ETF, the election of President Trump, and the establishment of a National Bitcoin reserve. The Bitcoin ETF amassed $36 billion in inflows within a year, marking a historical success. The Trump administration’s commitment to making the U.S. the "crypto capital of the world" has contributed to Bitcoin’s rise to $106,000, with the total cryptocurrency market capitalization nearing $3.9 trillion.
On the other hand, Robinhood has received multiple price target upgrades from analyst firms, including Needham, Piper Sandler, Mizuho (NYSE:MFG) Securities, and Bernstein SocGen Group. Needham analysts raised Robinhood’s price target to $70, reflecting the company’s impressive fourth-quarter performance in 2024, which resulted in a 60% EBITDA margin. Piper Sandler and Mizuho Securities increased their price targets to $75 and $80, respectively, following Robinhood’s earnings per share (EPS) announcement of $1.01, surpassing estimates. Bernstein SocGen Group significantly increased Robinhood’s price target to $105, following the company’s first $1 billion revenue quarter, primarily driven by a 487% sequential quarter-over-quarter growth in crypto revenues.
These developments highlight the recent successes of both Bitcoin and Robinhood Markets, as they continue to make a significant impact in their respective markets.
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