Robinhood Stock Draws Attention After JPMorgan Upgrade, Price Target Hike: Retail Enthusiasm Soars

Robinhood Markets Inc. (HOOD) stock drew retail attention on Tuesday after JPMorgan upgraded the shares to ‘Neutral’ from ‘Underweight’ while raising the price target to $43 from $20.

According to TheFly, JPMorgan believes alternative asset managers “continue to see compelling secular tailwinds," with retail and wealth as the "most compelling."

The firm also expects the potential for Trump policies favoring energy exchange businesses but expects less compelling growth in other asset classes.

JPMorgan highlighted that Robinhood has "made notable progress in legitimizing its operations" compared to its primary reliance on meme-stock trading three years ago.

Despite the upgrade and price target revision, HOOD shares traded nearly 0.5% lower in Tuesday’s pre-market session. The revised price target is close to the stock’s current trading level of $42.71 as of Monday’s closing.

Following the upgrade, retail sentiment on Stocktwits flipped into the ‘bullish’ territory (68/100) from ‘bearish’ a day ago.

HOOD’s Sentiment Meter and Message Volume as of 8:35 a.m. ET on Jan. 7, 2025 | Source: Stocktwits

Retail investors on Stocktwits took note of the upgrade. One user believes the upgrade may act in favor of the stock soon.

Last month, Robinhood reported upbeat operational figures for November 2024. The firm’s total assets under custody (AUC) more than doubled to $195 billion compared to the same period a year ago, while net deposits stood at $5.6 billion.

Robinhood's funded customers increased by 6% year-over-year (YoY) or by 1.5 million to 24.8 million at the end of the month. The company also witnessed a significant jump in trading volumes, with the total notional equity trading volume almost tripling to $147.1 billion and options contracts trading rising 63% YoY to 155.5 million.

Investors will now wait for the firm’s December update to see if the growth continues. Notably, Robinhood stock gained over 243% over the last year.

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