Analysts at Citigroup are elevating their worth forecast for Robinhood (HOOD) inventory, whose shares are already up over 220% year-to-date. On September 23, Citigroup lifted the inventory’s worth goal to $135 from $120, whereas sustaining a Impartial ranking for its shares. The analysts cite elevated buying and selling exercise across the inventory, in addition to latest income success over the previous few quarters.
As well as, analysts at Mizuho preserve probably the most optimistic forward-looking worth goal of $145, suggesting vital upside potential from the present worth of $121.78. Piper Sandler additionally raised their Robinhood (HOOD) inventory worth goal to $140 from $120, reiterating an Chubby ranking. Analyst Patrick Moley writes that prediction markets are fueling the corporate’s progress, with sports activities betting already bringing in roughly $200 million in income. Moreover, the analysts added that Kalshi, a contract trade that Robinhood Markets has partnered with, is on observe for file volumes in September. This might solely equate to additional income for the inventory, simply in time for Q3 earnings on October 29.
The US inventory market has picked up steam up to now week following the Federal Reserve’s rate of interest lower. The S&P 500 index specifically is on the rise, with HOOD shares main the rally. 12 months-to-date, HOOD is among the finest performers on the index, gaining some assist from each inventory and crypto followers. Late final month, HOOD rallied following Trump’s pro-crypto government order that allows 401 (ok) financial savings plans to incorporate cryptocurrencies and digital belongings. Main cryptocurrencies and crypto-related shares had been rallying early earlier than the announcement, together with Bitcoin and different high cash.
Robinhood reported Q2 income of $989M, up 45% YoY, pushed by file buying and selling volumes and diversified product progress throughout crypto, banking, and lively buying and selling. Adjusted EBITDA margin reached 56%, with EPS doubling YoY. Administration reiterated sturdy momentum into Q3 with $6B in July internet deposits and reaffirmed 2025 profitability objectives. Most analysts are bullish that the Q3 numbers subsequent month will ship the inventory even greater, with a surge to $200 on the playing cards.
