UPDATE: Autonomous Research Starts Robinhood Markets (HOOD) at Outperform
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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.
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