UPDATE: Autonomous Research Starts Robinhood Markets (HOOD) at Outperform
- S&P 500 climbs to record closing high; IBM weighs on the Dow
- Intel (INTC) Stock Sinks 7% as Q3 Revenue Misses, Guidance Disappoints and CFO Exits
- Snap (SNAP) Stock Just Crashed 25% Following Earnings
- Trump Media To Go Public Via $1.7 Billion SPAC Deal, Aims to Fight the Big Tech
- Tesla (TSLA) Beats EPS and Revenue Views on Improving Gross Margins, Analysts Praise Very Solid Quarter But Warn of 'Aggressive Valuation' as Stock 'Priced to Perfection'
Autonomous Research analyst Christian Bolu initiates coverage on Robinhood Markets (NASDAQ: HOOD) with a Outperform rating.
The analyst comments "After significant user growth in 2020/21, we expect future revenue growth to be primarily driven by increased monetization (most notably in crypto & lending). This could triple HOOD's ARPU over the next 3-5 years. Longer-term, disruptive actions on deposit pricing (if rates rise) and international expansion could power the next leg of account growth. We also believe M&A optionality is underappreciated – we think strategically attractive deals could add up to 700 bps to top-line growth while being up to 30% EPS accretive. All in, our $55 target price implies the stock can trade at 10x 2023 sales, in line with retail brokers and "money apps". We peg our bull case target price at $150 (~3x upside)."
Shares of Robinhood Markets closed at $40.53 yesterday.
You May Also Be Interested In
- Roth Capital Starts Decarbonization Plus Acquisition Corp II (DCRN) at Buy
- Kinross Gold (K:CN) (KGC) PT Lowered to Cdn$11 at Canaccord Genuity
- Eldorado Gold Corp (ELD:CN) (EGO) PT Lowered to Cdn$14.50 at Canaccord Genuity
Create E-mail Alert Related CategoriesAnalyst Comments, Hot Comments, Hot New Coverage, New Coverage
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!