Robinhood Grabs Attention After Barclays Upgrades Stock, Raises Price Target To $49: Retail Sentiment Fails To Align
Barclays reportedly upgraded Robinhood to ‘Overweight’ from ‘Equal Weight,’ while raising its price target to $49 from $26 as it sees a "uniquely differentiated growth opportunity set and an increasingly demonstrated ability to execute.”
FollowShares of fintech firm Robinhood Markets Inc. (HOOD) were in focus on Monday morning after Barclays joined the club of brokerages that recently upgraded their price target on the stock.
Barclays reportedly upgraded Robinhood to ‘Overweight’ from ‘Equal Weight’ while raising its price target to $49 from $26. It sees a "uniquely differentiated growth opportunity set and an increasingly demonstrated ability to execute.” The revised price target represents an 18% upside from current levels.
According to the analyst, the financial services firm is a direct beneficiary of the improving outlook for crypto. The firm indicated it is "increasingly confident" in Robinhood's longer-term roadmap and expects a unique opportunity in terms of both product and geographic expansion.
Barclays believes the conditions conducive to Robinhood over fiscal 2024, such as higher-for-longer rates and constructive equity markets, will continue or improve.
Robinhood shares were trading marginally in the red before the bell on Monday morning.
Retail investors on Stocktwits are betting big on the firm’s new user growth led by its Asia expansion, according to a poll conducted on the platform.
Robinhood received a slew of brokerage upgrades last week. Goldman Sachs upgraded the stock to ‘Buy’ from ‘Neutral’ and raised its price target to $46 from $40.
Piper Sandler raised its price target to $54 from $42 while keeping an ‘Overweight’ rating on the shares. Deutsche Bank, too, raised the firm's price target to $42 from $36 while keeping a ‘Buy’ rating.
The upgrades come amid optimism surrounding the firm’s first investor day conference. Some of the initiatives announced by Robinhood include plans to launch futures in early 2025, which offers a nine-figure revenue opportunity, the possibility of expanding into sports betting, plans to launch a brokerage in Asia next year, and leveraging its AI capabilities to provide advisory services.
HOOD’s Sentiment Meter and Message Volume as of 7:01 a.m. ET on Dec. 9, 2024 | Source: Stocktwits
Despite the prevailing Wall Street optimism, retail sentiment on Stocktwits continued to trend in the ‘bearish’ territory on Monday morning. User messages, though, displayed specks of optimistic takes on the stock.
Shares of Robinhood have more than quadrupled this year so far.
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