Robinhood has not missed EPS estimates in its last 11 quarters, while Coinbase has missed estimates in each of the past three quarters.
- BofA lifted Robinhood’s target to $156 from $140 and Coinbase’s to $203 from $174, maintaining ‘Buy’ ratings on both stocks.
- BofA cut eToro’s target to $39 from $46 and maintained a ‘Neutral’ rating.
- Robinhood stock is down more than 20% over the past year, while Coinbase and eToro have fallen nearly 50% and 40%, respectively.
Robinhood (HOOD) and Coinbase (COIN) shares gained in morning trade Monday after Bank of America raised its price targets on both crypto-linked stocks ahead of third-quarter earnings, while the firm cut its target on peer eToro (ETOR).
HOOD stock gained around 1% in morning trade, with retail sentiment on Stocktwits around the company trending in ‘bullish’ territory over the past day. Meanwhile, COIN stock jumped as much as 2.8%, but sentiment trended in the ‘bearish’ zone over the past day.
In a note to investors cited by TheFly, BofA analyst Craig Siegenthaler increased the price target on Robinhood to $156, up from $140, and maintained a ‘Buy’ rating. He raised the price target on Coinbase to $203, up from $174, also with a ‘Buy’ recommendation.
For eToro, Siegenthaler lowered the price target to $39 from $46 and maintained a ‘Neutral’ rating. ETOR stock fell around 1.1% in morning trade, with retail sentiment trending in ‘bearish’ territory over the past day.
Siegenthaler said the changes were part of the firm’s estimates reshuffling ahead of the third-quarter earnings season.
Robinhood Heads Into Earnings With A Long Beat Streak
Robinhood is expected to report third-quarter earnings of $0.64 per share on revenue of $1.4 billion, according to consensus estimates on Koyfin. The company has not missed EPS estimates in its last 11 quarters, giving investors a long track record of earnings beats heading into the latest report.
Despite that track record, HOOD stock is down more than 20% over the past 12 months.
The average analyst price target stands at $132.79, implying nearly 17% upside from current levels. BofA’s $156 target therefore sits above the broader analyst consensus and represents a more bullish view on the stock.
Coinbase Faces A Higher Bar After Three EPS Misses
Coinbase is expected to report a third-quarter loss of $0.20 per share on revenue of $1.77 billion. The exchange has missed earnings estimates in each of the past three quarters, putting more focus on whether the company can reverse that trend in its upcoming report.
COIN stock is down nearly 50% over the past 12 months alongside the drop in Bitcoin’s (BTC) price. The average analyst target on the shares currently stands at $207.85, implying more than 11% upside from current levels and sitting slightly above BofA’s forecast.
Bitcoin’s price was trading at around $85,500 at the time of writing, edging 0.4% higher in the last 24 hours. On Stocktwits, retail sentiment around the apex cryptocurrency shifted to ‘neutral’ from ‘bearish’ territory over the past day.
eToro’s EPS Record Is A Perfect Split
eToro is expected to report third-quarter EPS of $0.40 on revenue of $203 million. The company missed earnings estimates in the previous quarter. Since going public, it has beaten earnings estimates three times and missed them three times across six quarterly reports.
ETOR stock is down nearly 40% over the past 12 months, trading near $26, compared with the average analyst price target of $47.60. That consensus target implies nearly 85% upside from current levels, the largest potential gain among the three companies.
BofA’s $39 target is more cautious than the broader analyst view, however, and its ‘Neutral’ rating contrasts with the ‘Buy’ recommendations on Robinhood and Coinbase.
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