Deutsche Bank Upgrades Robinhood Markets (HOOD) to Buy
Deutsche Bank analyst Brian Bedell upgraded Robinhood Markets (NASDAQ: HOOD) from Buy to Buy with a price target of $24.00 (from $21.00).
The analyst comments "We view HOOD's growth potential as being exceptionally attractive, with the founders and mgmt. team not only pioneering simple brokerage trading, but also positioning the company to leverage its creative app, related services, and substantial network of customers into multiple digital financial services arenas. We see strong long-term earnings growth potential, supported by solid growth in transaction revenue and good cost control across a more diversified business base. While we believe we are conservative in modeling our crypto transaction revenue estimates, we also see future revenue being less dependent on this revenue source, assuming good continued core customer growth in usage of equities, options, and general investing, along with related cash and lending products. We also view HOOD as making encouraging progress with a wide range of growth initiatives to bolster customer growth, including its highly valuable Gold subscriptions, 24-hour stock trading, retirement account capabilities with matches, international expansion via its UK brokerage business and crypto trading in Europe, along with many other new product/service initiatives. We see an attractive risk/return profile for the stock, hence our Buy rating."
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Shares of Robinhood Markets closed at $18.65 yesterday.