Gold prices cool after rallying on Powell rate cut talk
Investing.com - Compass Point raised its price target on Robinhood Markets (NASDAQ:HOOD) to $96.00 from $64.00 on Friday, while maintaining a Buy rating on the stock. The company, currently trading at $84.52 and sporting a "GREAT" financial health score according to InvestingPro, has shown remarkable momentum.
The research firm cited Robinhood’s strong performance, noting the stock has surged 126.84% year-to-date as "the business is clicking on all cylinders." Trading at a P/E ratio of 47.37x and showing significant volatility, the stock appears overvalued according to InvestingPro analysis, which offers 13 additional investment tips for subscribers.
Compass Point identified multiple growth themes supporting Robinhood, including "a well capitalized retail trader, maturing Millennial/Gen Z demographics, and efficiencies from blockchain tech" such as tokenized stocks and stablecoins.
The firm suggested investors might want to buy any potential dip if there’s a "sell the news" reaction following Monday’s crypto event, referred to as EthCC(8). Compass Point believes sufficient catalysts remain in 2025 that could drive the stock higher.
The new $96 price target reflects a higher multiple applied to Compass Point’s 2026 EBITDA estimate, which exceeds Wall Street consensus by 14%.
In other recent news, Robinhood Markets, Inc. reported a substantial 89% year-over-year growth in platform assets, reaching $255 billion as of May 2025. The company also saw an increase in funded customers, now totaling approximately 25.9 million, and noted a significant rise in trading volumes across equities, options, and cryptocurrencies. In addition, Robinhood’s securities lending revenue for May increased by 43% compared to the previous year. Meanwhile, Mizuho (NYSE:MFG) raised its price target for Robinhood to $80, citing strong May results and an optimistic outlook for the company’s upcoming events related to digital assets. Conversely, Redburn-Atlantic downgraded Robinhood’s stock rating to Sell, expressing concerns about the sustainability of recent gains and challenges in the business model.
Additionally, Robinhood launched a new crypto deposit match program, offering customers a 1% match on crypto net deposits, with the potential to increase to 2% if certain conditions are met. The company also announced several platform enhancements, including advanced charting features and simulated potential returns on stocks. In other developments, Hims & Hers Health appointed Dheerja Kaur as its first Chief Product Officer, a strategic move aimed at supporting the company’s global expansion and AI investments. Kaur’s leadership is expected to enhance provider-patient engagement and develop AI-powered tools within the healthcare platform.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.