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Robinhood stock receives Buy rating as Deutsche Bank raises EPS estimates by over 40%

EditorAhmed Abdulazez Abdulkadir
Published 12/05/2024, 08:38 PM
© Reuters
HOOD
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The analyst's statement reflected a positive outlook, citing the "much better than expected November metrics" as a key reason for the raised estimates and target price. The analyst concluded that the investor day event bolstered their optimism regarding Robinhood's long-term revenue and earnings growth potential, leading to the revised price target and reiteration of the Buy rating.

While the stock trades at a relatively high P/E ratio of 66.74, InvestingPro subscribers can access over a dozen additional key metrics and insights to better evaluate Robinhood's growth prospects. While the stock trades at a relatively high P/E ratio of 66.74, InvestingPro subscribers can access over a dozen additional key metrics and insights to better evaluate Robinhood's growth prospects.

The analyst's statement reflected a positive outlook, citing the "much better than expected November metrics" as a key reason for the raised estimates and target price. The analyst concluded that the investor day event bolstered their optimism regarding Robinhood's long-term revenue and earnings growth potential, leading to the revised price target and reiteration of the Buy rating. While the stock trades at a relatively high P/E ratio of 66.74, InvestingPro subscribers can access over a dozen additional key metrics and insights to better evaluate Robinhood's growth prospects.

The analyst's statement reflected a positive outlook, citing the "much better than expected November metrics" as a key reason for the raised estimates and target price. The analyst concluded that the investor day event bolstered their optimism regarding Robinhood's long-term revenue and earnings growth potential, leading to the revised price target and reiteration of the Buy rating.

While the stock trades at a relatively high P/E ratio of 66.74, InvestingPro subscribers can access over a dozen additional key metrics and insights to better evaluate Robinhood's growth prospects.

The analyst's statement reflected a positive outlook, citing the "much better than expected November metrics" as a key reason for the raised estimates and target price. The analyst concluded that the investor day event bolstered their optimism regarding Robinhood's long-term revenue and earnings growth potential, leading to the revised price target and reiteration of the Buy rating.

In other recent news, Robinhood Markets (NASDAQ:HOOD) has demonstrated significant growth in its financial performance, with Q3 2024 revenues increasing by 36% year-over-year to $637 million and adjusted EBITDA nearly doubling to $268 million.

The company also made its largest acquisition to date, TradePMR, valued at $300 million, adding $40 billion in assets under administration and over 1,000 Registered Investment Advisors.

Morgan Stanley (NYSE:MS) has maintained an Overweight rating on Robinhood's stock, citing the company's ambition to become a leading platform in active trading. Piper Sandler and Bernstein also raised their price targets for Robinhood, reflecting the potential for further growth in the cryptocurrency sector.

Robinhood's recent developments include the launch of new trading products such as Index Options and Futures, as well as the desktop platform Robinhood Legend. The company is also planning to introduce futures trading in early 2025, which is seen as a potential nine-figure revenue opportunity. Robinhood has increased its cryptocurrency offerings to 20 tokens and is exploring opportunities in institutional and international exchange markets.

The company's November 2024 operating data showed a significant increase in Funded Customers and Assets Under Custody, with customer Net Deposits exceeding $5 billion in November. Equity Notional Trading Volumes for November were over $145 billion, marking an increase of over 15% from the previous month.

Lastly, Robinhood's chief legal and compliance officer, Dan Gallagher, is being considered for the chair of the Securities and Exchange Commission in the upcoming administration.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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