Robinhood's Financial Trajectory Looks Upward With Fresh Strategy, Analyst Weighs In
Portfolio Pulse from Anusuya Lahiri
Mizuho analyst Dan Dolev reiterated a Buy rating on Robinhood Markets, Inc (NASDAQ:HOOD) with a price target of $15, citing the potential boost to 2024 adjusted EBITDA from a new 3-cent pass-through charge per option contract. Despite a decline in FY24 EBITDA estimates from over $660 million to $560 million since Q3 reporting, Dolev believes the market has not fully accounted for the impact of the pass-through charge. He raised his EBITDA estimate to $562 million from $533 million and projected Q4 revenue and EBITDA at $484 million and $117 million, respectively. HOOD's stock was slightly down at $10.98.
January 23, 2024 | 7:22 pm
News sentiment analysis
Sort by:
Descending
POSITIVE IMPACT
Mizuho analyst Dan Dolev reiterated a Buy rating on Robinhood Markets, Inc (HOOD) with a price target of $15, expecting a 5% or more boost to 2024 adjusted EBITDA from a new pass-through charge. He raised his EBITDA forecast and projected solid Q4 revenue and EBITDA.
The positive outlook from the analyst, including the raised EBITDA estimate and the Buy rating, suggests a potential upward trajectory for HOOD's stock price in the short term. The market may react positively to the analyst's projections and the potential for higher incremental margins.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 100