Robinhood Markets Grows Into ‘Greatest-In-Class’ Brokerage, Analyst Says – Robinhood Markets (NASDAQ:HOOD)

Analysts have up to date protection and raised worth targets on Robinhood Markets, Inc. HOOD after the corporate hosted its first investor day on Wednesday and confirmed vital development throughout clients, property beneath custody and buying and selling volumes. 

Skilled Concepts: Goldman Sachs analyst James Yaro assumed protection of Robinhood Markets on Thursday and upgraded the inventory from Impartial to Purchase with a $46 worth goal. The analyst highlighted the agency’s development as pushed by continued pockets share good points amongst lively merchants and sees a long-term alternative for Robinhood to increase into different areas, together with wealth administration and worldwide markets.  

Learn Subsequent: Friday’s High 5 Trending Shares: What’s Going On With SoundHound AI, GameStop, Lululemon?

“HOOD has efficiently migrated from a quick rising, periodically worthwhile on-line dealer servicing largely youthful traders, to a best-in-class prime and bottom-line asset beneath custody compounder with a rising complete addressable market,” Yaro wrote. 

Robinhood’s common income per consumer (ARPU) has greater than doubled over the previous two years and Yaro sees the agency’s ARPU rising one other 19% by way of 2026, pushed primarily from transaction income development.  

The Goldman Sachs analyst additionally sees additional development of property beneath custody (AUC), pushed by Robinhood’s low brokerage market share at current and its increasing pockets share amongst lively merchants. Yaro highlighted the “best-in-class buyer worth” offered by way of the corporate’s HOOD Gold providing, in addition to new merchandise for lively merchants together with index choices, futures, crypto choices and prediction markets. 

Piper Sandler analyst Patrick Moley additionally weighed in on the potential for Robinhood to develop its property beneath custody. In a Thursday be aware, Moley pointed to Robinhood’s youthful demographic, with 75% of its clients beneath age 43 mixed with an ongoing generational wealth switch of roughly $85 trillion, offering gasoline for vital AUC and income development. 

Piper Sandler maintained its Chubby score on Robinhood shares and raised its worth goal from $42 to $54.

HOOD Value Motion: In line with knowledge from Benzinga Professional, Robinhood Markets shares ended Friday’s session 7.07% increased at $41.67.

Learn Subsequent: 

Picture: Shutterstock