Robinhood Markets (HOOD) PT Raised to $7 at Atlantic Equities

Atlantic Equities analyst John Heagerty raised the price target on Robinhood Markets (NASDAQ: HOOD) to $7.00 (from $5.00) while maintaining a Underweight rating.

The analyst comments "Robinhood's key trends remained negative in July. However, the Fed's assertion of a more hawkish approach to taming inflation has a positive impact on our NII forecasts. MAU declined a further 0.8m MoM to 13.2m, but trading volumes were only modestly negative MoM and were slightly positive on an average daily basis. Assets Under Custody also rose given the rebound in equity markets during the month. Overall, we have increased our revenue forecasts by 10% in FY22 and by 20% in FY23, mostly reflecting a higher forecast Fed Funds rate. We have also lowered our expense forecasts, in line with recent guidance. The net impact is to lower our forecast adj. EBITDA loss for FY22 and we now forecast a positive adj. EBITDA for FY23. However, given substantial uncertainty regarding transactional revenues, particularly in crypto, we retain our Underweight rating with a raised price target of $7 (from $5)."

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