On Thursday, Mizuho Securities upheld its positive stance on Robinhood Markets (NASDAQ:HOOD), increasing the stock's price target to $20.00 from the previous $17.00. The firm continues to recommend a Buy rating for the stock. This adjustment follows Robinhood's impressive February performance metrics, which were reported last night and have led to a favorable market reaction today.
Robinhood's Assets Under Custody (AUC) showed a notable increase to approximately $120 billion. Moreover, the company experienced a sequential re-acceleration in trading volumes for all asset classes, with trader activity reaching its highest point since January 2022.
The brokerage platform's net deposits for the quarter have already surpassed $7 billion, which is considerably higher than the previous record of $4.6 billion set in the fourth quarter of 2023.
The firm's analyst highlighted these achievements as indicators of Robinhood's growing market share in both trading volumes and industry assets. The expansion of Robinhood's product offerings and its geographical presence were also mentioned as contributing factors to the company's success. In light of these developments, Mizuho has revised its estimates upward.
The report concludes with a reaffirmation of the firm's view that Robinhood is gaining traction within the industry. The updated stock price target of $20 reflects the firm's confidence in Robinhood's continued growth and its ability to capitalize on the expanding market opportunities.
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