Robinhood stock is booming as it gets the best financial and best crypto listings.
Zero fee stock and cryptocurrency trading app Robinhood (Hood) hit on two major ideas on Wall Street. After significantly outperforming the S&P 500 last year, Robinhood stock hit a new high on Wednesday. Analysts continue to raise price targets.
‘Best’ Financial Stock, ‘Best’ Crypto Asset
On Wednesday, Morgan Stanley added Robin Hood stock to its “Financials’ Finest” list, TheFly.com reported. Analysts at the company said they see a sustainable business model with multiple growth drivers as “as opposed to a mim stock.” The firm has a $55 price target on the overweight stock.
On Tuesday, Bernstein named Robin the new “best idea in global digital assets.” Firm analysts expect Robinhood’s crypto business to benefit as the regulatory environment for cryptocurrencies becomes more favorable. Incoming President Donald Trump has a friendly view of digital currencies. Analysts at Bernstein are more bullish on Robinhood stock, with a 2024 upside.They have a $51 price target on the top-rated stock.
Robin Hood stock jump
HOOD shares rose 9.8% to close at 46 in Wednesday trading, clearing a short rally. Robinhood stock extended Tuesday’s 5.5% rally. The online brokerage’s stock is up nearly 24% this young year and has more than quadrupled over the past year, rising nearly 315%.
Those profits became rivals of online stock or cryptocurrency brokers Charles Schwab (SW), Coinbase (Coin) and Interactive brokers (IBKR) in the dust, although the former has risen in the past year and the latter two have doubled or more.
On Wednesday, the biggest bank stocks jumped amid better-than-expected earnings. Bitcoin is back above $99,000.
Robinhood has been profitable for the past several quarters with strong double-digit revenue growth.
Analysts raise HOOD stock targets as the clouds lift
On Monday, Robinhood agreed to pay a $45 million fine to settle an investigation by the Securities and Exchange Commission. The agency accused the firm of “failing to comply with a number of significant regulatory requirements, including failure to accurately report trading activity, comply with short selling laws, submit timely suspicious reports, maintain books and records and protect customer information.”
As regulatory clouds lift, Robinhood stock continues to receive price target increases.
This week, JMP Securities raised its price target on Robinhood shares to $60 from $53, according to TheFly.com. The company expects a more favorable regulatory environment for financial services and financial technology companies under the incoming administration, JMP analysts said in a note. They named HOOD among the top four ideas with the most compelling risk-reward profile.
Barclays raised its price target on HOOD stock to $54 from $49. With transaction activity and account collections generally remaining strong, Robinhood could deliver a “very strong hit,” the firm’s analysts said. Robinhood is expected to report its next earnings in February.
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