Robinhood Markets (HOOD) PT Raised to $19 at Deutsche Bank

April 5, 2024 5:08 AM EDT
Get Alerts HOOD Hot Sheet
Price: $20.09 +12.23%

Rating Summary:
    8 Buy, 6 Hold, 4 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 4 | Down: 2 | New: 21
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(Updated - April 5, 2024 7:22 AM EDT)

Deutsche Bank analyst Brian Bedell raised the price target on Robinhood Markets (NASDAQ: HOOD) to $19.00 (from $16.00) while maintaining a Hold rating.

The analyst comments "Our PT is based on where we think HOOD will trade a year from now based on our 2025 EPS estimate. We are using a market P/E of ~19.5x on this 2025 EPS estimate, given the substantial uncertainty of future forecasted earnings contrasted with high potential growth that we think is inherent in HOOD's current business model and status of being a relatively early-stage company in many aspects. Upside risks are: 1) much stronger trading volumes, 2) rapid traction on growth initiatives, 3) resiliency of order flow payment revenue, 4) greater account and asset growth than expected, 5) better leverage to higher interest rates than expected, and 6) better cost control than expected. Downside risks are: 1) lower trading volumes, 2) much lower order flow pricing, 3) higher-than-expected expenses, 4) more severe regulatory and litigation risks than expected, 5) slow traction in growth initiatives, 6) more intense competition, and 7) any risk of further safety concerns, especially if driving customer attrition."

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