Robinhood Gets A Price Target Cut At Citi Over Market Uncertainty: Retail Spirits Remain High
As part of its first-quarter earnings preview for brokers and asset managers, Citi’s analysis considered the ongoing uncertainty in the markets.
Shares of Robinhood Markets Inc. (HOOD) plunged nearly 11% in Wednesday’s after-hours trading session. Now, amid growing market uncertainty, analysts at Citi cut their price target for the equity and cryptocurrency trading platform.
According to The Fly, Citi lowered its price target for Robinhood to $50 from $60, implying a 17% upside from Wednesday’s closing price. It maintained a ‘Neutral’ rating on the stock.
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As part of its first-quarter earnings preview for brokers and asset managers, Citi’s analysis considered the ongoing uncertainty in the markets.
The brokerage noted that the market’s risk-on mode and enthusiasm have “tempered” recently. The growing economic uncertainty amid President Donald Trump’s tariff wars has resulted in heightened volatility across the market, it said in a recent research note.
Going forward, Citi expects the volatility to continue, and as a result, the markets could “gyrate,” pushing away some investors.
Robinhood expanded its portfolio in March to include artificial intelligence-powered (AI) financial advice, banking account, and asset management services, named Cortex, Banking, and Strategies, respectively.
Despite Citi’s cautious outlook, retail sentiment on Stocktwits around Robinhood remained in the ‘bullish’ territory.
However, not everyone is as optimistic – one user said they are “not looking forward” to the next few days after the Trump administration’s “Liberation Day” tariffs announcement.
Koyfin data shows the average price target for Robinhood is $65.50, implying a 53% upside from current levels.
Of the 21 brokerage calls, 14 recommend ‘Buy’ or ‘Strong Buy,’ while seven have a ‘Hold’ rating on the stock.
Robinhood’s stock has gained 15% year-to-date.
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