This Analyst Raised Robinhood's Forecast By 46% - Here's Why
Portfolio Pulse from Anusuya Lahiri
Keybanc analyst Josh Beck maintained Robinhood Markets Inc (HOOD) with an Overweight rating and raised the price target from $15 to $22, citing increased transaction revenue estimates and a larger interest-earning balance. Beck's revised fiscal 2024 and 2025 estimates reflect growth in equity, option contract, and crypto volumes, as well as higher net interest revenue. The price target adjustment is based on a 19.5x fiscal 2024 adjusted EBITDA, compared to the FinTech peer median of 22.6x. Robinhood's stock has gained 134% in the last 12 months and is included in ARK Next Generation Internet ETF (ARKW) and ARK Fintech Innovation ETF (ARKF).
March 28, 2024 | 5:56 pm
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POSITIVE IMPACT
ARK Fintech Innovation ETF (ARKF) includes Robinhood in its portfolio, which may see indirect benefits from the positive analyst outlook on Robinhood.
Given ARKF's inclusion of Robinhood, the ETF might experience indirect positive impacts due to the raised price target and optimistic analyst outlook on Robinhood, potentially attracting more investors to the ETF.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
ARK Next Generation Internet ETF (ARKW) includes Robinhood in its portfolio, which may see indirect benefits from the positive analyst outlook on Robinhood.
Given ARKW's inclusion of Robinhood, the ETF might experience indirect positive impacts due to the raised price target and optimistic analyst outlook on Robinhood, potentially attracting more investors to the ETF.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
Robinhood's price target was raised from $15 to $22 by Keybanc analyst Josh Beck, based on increased transaction revenue estimates and a larger interest-earning balance.
The price target increase for Robinhood is significant, reflecting a positive outlook on the company's revenue growth and profitability. This is likely to be viewed positively by investors, potentially leading to a short-term increase in stock price.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100