Raymond James Starts Robinhood Markets (HOOD) at Market Perform, 'Lofty Valuation'

Raymond James analyst Patrick O\'Shaughnessy initiates coverage on Robinhood Markets (NASDAQ: HOOD) with a Market Perform rating.

The analyst comments "We are initiating coverage on Robinhood Markets with a Market Perform investment rating. Robinhood has been a massive disruptive force in online brokerage since its founding in 2013, pioneering no-commission trades via a simple but appealing and intuitive trading interface. New account and deposit growth has been accelerating in recent quarters, and trading volumes have markedly improved as well. Looking ahead, Robinhood continues to expand its suite of products and services via an ambitious growth agenda. Despite all those positives, however, we believe the company’s current valuation requires one to underwrite sustainably high transaction volumes and/or limited downside to short-term interest rates, assumptions we are not comfortable forecasting. In particular, client trading activity has historically been quite volatile, particularly within crypto. As a result, while in the very near-term we suspect the stock’s strength may persist due to expected healthy 4Q24 results, we do not like the risk/reward at this time."

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 $51.90 yesterday.

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