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Redburn-Atlantic Starts Robinhood Markets (HOOD) at Neutral

December 1, 2023 4:38 AM
(Updated - December 1, 2023 4:38 AM EST)

Redburn-Atlantic analyst Charles Bendit initiates coverage on Robinhood Markets (NASDAQ: HOOD) with a Neutral rating and a price target of $9.50.

The analyst comments "Robinhood has had a profound impact on the construct of the US online brokerage market as a pioneer of commission-free trading. We view the gearing it has into the increasing wealth of its millennial customers, a generation whose share of total US wealth is projected to triple by 2030, as well as the exposure it offers to developments in the crypto universe as core positives around the investment case. However, our Neutral rating reflects concerns around: (i) deteriorating user growth and engagement, as well as potentially a highly concentrated revenue base within the client base; (ii) ongoing uncertainty around the regulatory status of payment for order flow (PFOF); and (iii) an uncertain path to sustainable levels of greater profitability, around which the market now has more limited tolerance. Our price target for Robinhood is $9.50."

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 $8.80 yesterday.


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