Investing.com -- At its investor day on December 4, Robinhood (NASDAQ:HOOD)'s management outlined the platform's strategic vision for the next decade, providing details on near-term product and geographic priorities.
The company's shares rose over 4% in premarket trading Thursday.
Mizuho (NYSE:MFG) analysts came away with a more optimistic view following the event, highlighting Robinhood's 10-year vision to capitalize on the $84 trillion wealth transfer from older to younger generations.
Robinhood’s objective is to grow by 10x, which Mizuho analysts believe “isn't unthinkable given that it already grew revenue 10x since 2019.”
Analysts highlight that the total addressable market (TAM) amounts to roughly $600 billion. This represents roughly 200 times the company’s current fiscal-year revenue estimates, with less than 1% of that TAM currently penetrated.
“We are incrementally upbeat post-analyst day about HOOD's opportunity to tap a $600bn revenue TAM with both near-term initiatives like boosting Active Trader engagement & medium to long-term opportunities including broadening share of wallet and growing in the global financial ecosystem,” analysts led by Dan Dolev said.
Mizuho raised the target price on HOOD stock from $34 to $60.
Meanwhile, KeyBanc Capital Markets analysts said their key takeaways from the event were also the $600 billion TAM opportunity, alongside “product velocity, and confidence in operating efficiency conveyed by the team.”
“While valuation does warrant a bit more discussion today, we have greater confidence in the momentum behind asset/revenue growth today and feel that an easing regulatory environment should produce a more favorable operating backdrop,” the firm noted.
KeyBanc also raised its Robinhood target price to $47 from $30.
Lastly, Piper Sandler analyst Patrick Moley said they came away from the event “with an increasingly bullish outlook for HOOD shares.” The team believes that the mix of robust brand recognition, small market share, and a strong product roadmap “position HOOD well for future growth.”
The investment bank reiterated an Overweight rating, lifting the target price to $54.