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Deutsche Bank Maintains Robinhood(HOOD.US) With Buy Rating, Raises Target Price to $27

Futu News ·  Sep 30 19:31  · Ratings

Deutsche Bank analyst Brian Bedell maintains $Robinhood (HOOD.US)$ with a buy rating, and adjusts the target price from $24 to $27.

According to TipRanks data, the analyst has a success rate of 55.0% and a total average return of 10.2% over the past year.

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Furthermore, according to the comprehensive report, the opinions of $Robinhood (HOOD.US)$'s main analysts recently are as follows:

  • There is a positive outlook on Robinhood's revenue and earnings momentum, supported by various initiatives aimed at attracting more users, expanding market reach, and increasing engagement across their offerings. The expectation is for the company to sustain a significant annual growth in net new assets, surpassing 20% leading up to 2025, with a continued trend into 2026. This growth trajectory is anticipated to contribute to ongoing expansion in adjusted EBITDA margins and robust double-digit earnings growth in the mid-2020s.

  • The general outlook for the brokerage sector appears to be shifting towards a negative sentiment due to anticipated lower rate expectations, particularly for those that are asset sensitive, and ongoing concerns regarding sweep deposit pricing. Average earnings predictions for brokers have been lowered by approximately 6% for 2025 and 7% for 2026, with the exception of one company which has seen positive forecast adjustments. There are perceived risks to the consensus estimates for most firms in this space, with one particular company facing the highest level of risk. Meanwhile, positive sentiments are maintained towards another firm. Adjustments in estimates for one company have been made in light of notable net deposit trends and recent trading activities. While there is a growing optimism due to improved fundamentals, caution is advised due to potential declines in trading activities and longer-term uncertainties about organic growth.

Note:

TipRanks, an independent third party, provides analysis data from financial analysts and calculates the Average Returns and Success Rates of the analysts' recommendations. The information presented is not an investment recommendation and is intended for informational purposes only.

Success rate is the number of the analyst's successful ratings, divided by his/her total number of ratings over the past year. A successful rating is one based on if TipRanks' virtual portfolio earned a positive return from the stock. Total average return is the average rate of return that the TipRanks' virtual portfolio has earned over the past year. These portfolios are established based on the analyst's preliminary rating and are adjusted according to the changes in the rating.

TipRanks provides a ranking of each analyst up to 5 stars, which is representative of all recommendations from the analyst. An analyst's past performance is evaluated on a scale of 1 to 5 stars, with more stars indicating better performance. The star level is determined by his/her total success rate and average return.

The above content is for informational or educational purposes only and does not constitute any investment advice related to Futu. Although we strive to ensure the truthfulness, accuracy, and originality of all such content, we cannot guarantee it.
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