Mizuho raises Robinhood stock price target to $120 on strong user growth

Published 31/07/2025, 14:14
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Investing.com - Mizuho (NYSE:MFG) raised its price target on Robinhood Markets (NASDAQ:HOOD) to $120.00 from $99.00 on Thursday, while maintaining an Outperform rating on the stock. The new target sits within the analyst range of $48-$130, as tracked by InvestingPro, with the stock showing remarkable momentum, having delivered a 415.8% return over the past year.

The investment firm cited Robinhood’s accelerating year-over-year growth in funded accounts, which increased by 750,000 quarter-over-quarter compared to 620,000 in the first quarter, as a key factor behind the revised target.

Mizuho highlighted several other positive metrics from Robinhood’s quarterly results, including a year-over-year increase of 1.5 million Gold subscribers, retirement assets under custody growing 1.8 times, and cryptocurrency revenue jumping 98% compared to the same period last year.

The company also reported a 500 basis point quarter-over-quarter improvement in EBITDA margin, demonstrating enhanced profitability alongside its growth in users and revenue streams.

Mizuho expressed particular interest in Robinhood’s strategic focus on asset tokenization and expansion into lending services, while noting that July started strongly with equity and options volumes setting "new monthly records."

In other recent news, Robinhood Markets reported robust financial results for the second quarter of 2025, surpassing analysts’ expectations. The company achieved earnings per share of $0.42, which significantly exceeded the analyst estimate of $0.28 and the consensus forecast of $0.31. Revenue for the quarter reached $989 million, surpassing the anticipated $908.32 million by nearly 9%. Additionally, Robinhood’s adjusted EBITDA was reported at $549 million, marking an 82% year-over-year increase.

Following these strong results, Cantor Fitzgerald raised its price target for Robinhood to $118, maintaining an Overweight rating. The firm highlighted the company’s strong performance in the second quarter and noted that the third quarter began well, with net deposits in July exceeding $6 billion. Citizens JMP also adjusted its price target upwards to $130, keeping a Market Outperform rating, citing the impressive earnings report. These developments reflect a positive outlook from analysts regarding Robinhood’s financial performance and growth prospects.

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