On Tuesday, Piper Sandler affirmed its Overweight rating on Robinhood Markets (NASDAQ:HOOD) with a steady price target of $75.00. The stock has shown remarkable momentum, surging 75.2% year-to-date and trading near its 52-week high of $66.91. According to InvestingPro analysis, technical indicators suggest the stock is currently in overbought territory. The research firm’s analysts highlighted Robinhood’s potential earnings growth from its expansive product roadmap. They anticipate that the inclusion of new products such as futures, index options, advisory services, credit cards, and crypto/digital assets could significantly boost earnings estimates for the upcoming years. This expansion comes as the company demonstrates strong financial performance, with InvestingPro data showing impressive revenue growth of 58.23% in the last twelve months. Get access to 7 more exclusive InvestingPro Tips and comprehensive analysis through the Pro Research Report.
The analysts project that these product launches might contribute an additional 7% to their 2025 earnings estimate and 13% to their 2026 earnings estimate, compared to their current projections. This could represent a 15% and 24% increase over the consensus estimates for those years, respectively. With a long-term perspective, Piper Sandler sees Robinhood achieving approximately $3.60 in earnings per share by 2030.
With a market capitalization of $57.74 billion, Robinhood’s current market valuation is around 38 times the consensus earnings per share estimate of $1.70 for 2026. The stock trades at a P/E ratio of 40.9x, which InvestingPro analysis indicates is relatively high compared to its peers. The analysts’ reiteration of the Overweight rating reflects their confidence in Robinhood’s strategic positioning and its ability to capitalize on various aspects of its business in the years ahead. Piper Sandler’s stance indicates a positive outlook for Robinhood’s shares, as the company continues to expand its service offerings and potentially increase its earnings trajectory.
In other recent news, Robinhood Markets has seen a series of price target upgrades following its strong earnings report. Keefe, Bruyette & Woods raised their price target to $60, citing an earnings per share of $0.54, surpassing their estimate by $0.05 and the consensus by $0.12. Needham analysts increased the price target for Robinhood to $70, following the company’s impressive fourth-quarter performance in 2024, which saw a 60% EBITDA margin. Needham also revised its revenue forecast for fiscal year 2025 to $3.8 billion, up from $3.5 billion, based on Robinhood’s sustained business expansion.
Piper Sandler and Mizuho (NYSE:MFG) Securities also raised their price targets for Robinhood to $75 and $80, respectively, maintaining their positive ratings on the stock. These revisions were largely driven by Robinhood’s robust fourth-quarter results and the company’s promising growth trajectory.
In other developments, Bernstein analysts highlighted the ongoing Bitcoin bull market, attributing its surge to expectations of Bitcoin exchange-traded funds (ETFs) and the successful launch of a Bitcoin ETF. They also noted the Trump administration’s commitment to establish the U.S. as the "crypto capital of the world," which has fueled further momentum in the cryptocurrency market. These recent developments reflect a favorable operating environment for Robinhood and the broader financial market.
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