Robinhood Markets (HOOD) Shares Get Hit with a One-Two Punch - Wolfe Research

Wolfe Research analyst Steven Chubak reiterated a Peerperform rating and $40.00 price target on Robinhood Markets (NASDAQ: HOOD) after shares fell 7% due to two issues:

1) PayPal’s plan to expand into retail trading became tangible with the company hiring industry veteran Rich Hagen (cofounder of TradeKing) to help with the build. This follows PYPL’s February investor day where management detailed a plan to add investment capabilities as a part of its “Super App” build.

2) Barron’s published an interview with SEC Chair Gensler, who noted that a full Payment For Order Flow (PFOF) ban is “on the table”.

The analyst remains neutral to negative on the name stating "PFOF ban was contemplated as part of our bear case in our HOOD initiation; with PFOF composing >70% of HOOD revenues, we are not surprised by the negative stock reaction. PFOF risk is one of the key reasons we are not more positive on HOOD shares, and until we get clarity on PFOF regulation, we believe investors should also remain on the sidelines."

For an analyst ratings summary and ratings history on Robinhood Markets click here. For more ratings news on Robinhood Markets click here.

Shares of Robinhood Markets closed at $43.64 yesterday.

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