Stifel bumps Nvidia stock target, sees attractive valuation
On Friday, Piper Sandler reaffirmed its Overweight rating on Robinhood Markets (NASDAQ:HOOD) with a steadfast $70.00 price target. The firm’s analysts predict positive performance for crypto-linked stocks, contingent on the continuation of the current bitcoin bull run. Robinhood is seen as a prime candidate to benefit from this trend, given its potential for scaling up cryptocurrency operations in addition to its established cash equity and options brokerage business. With a market capitalization of $56.43 billion and impressive year-to-date returns of over 71%, the company has shown strong momentum. According to InvestingPro analysis, the stock currently trades above its Fair Value, suggesting investors should carefully consider entry points.
The analysts at Piper Sandler highlighted Robinhood’s diversified business model, which they believe will serve as a buffer against potential slowdowns in cryptocurrency activities. They noted that Robinhood stands out among U.S. multi-asset class retail trading platforms for its comprehensive cryptocurrency offerings. According to Piper Sandler, Robinhood’s crypto services are unparalleled, and the platform possesses a significant customer base keen on trading cryptocurrencies. The company’s robust business model is reflected in its impressive 90.98% gross profit margin and strong revenue growth of 59.65% over the last twelve months.
The $70 price target set by Piper Sandler is based on approximately 38 times the firm’s projected earnings per share (EPS) for Robinhood in 2026. The analysts underscored, however, that the rating is subject to risks including regulatory uncertainty, fluctuations in retail trading activity, and potential legal challenges that the company might face. InvestingPro data reveals that the stock currently trades at a P/E ratio of 35.41, with analysts having recently revised their earnings expectations downward. For deeper insights into Robinhood’s valuation and comprehensive analysis, investors can access the detailed Pro Research Report, available exclusively to InvestingPro subscribers.
Robinhood’s strategy includes leveraging its already successful cash equity and options brokerage to further develop its cryptocurrency trading segment. This approach is expected to attract and retain customers interested in a broad array of trading options. Piper Sandler’s endorsement reflects confidence in Robinhood’s ability to capitalize on the current market dynamics and its robust positioning in the cryptocurrency space.
In other recent news, Robinhood has announced the expansion of its desktop platform to the United Kingdom (TADAWUL:4280), aiming to provide UK retail investors with enhanced trading tools. This strategic move is part of Robinhood’s ongoing efforts to broaden its global footprint and cater to a growing base of retail investors. Additionally, Needham analysts have raised their price target for Robinhood shares to $71, maintaining a Buy rating. The upgrade is influenced by Robinhood’s product expansion, including its acquisition of WonderFi and the anticipated closure of the Bitstamp acquisition in 2025, which are expected to bolster its cryptocurrency offerings.
Meanwhile, Keefe, Bruyette & Woods (KBW) has maintained a Market Perform rating for Robinhood, with a price target of $47. The firm’s analysis indicates that while equity trading volumes align with expectations, options and cryptocurrency trading volumes have slightly underperformed. KBW’s report suggests that Robinhood’s second quarter earnings per share could exceed consensus estimates if current metrics persist. Furthermore, Mogo Inc. has expressed support for Robinhood’s acquisition of WonderFi Technologies, highlighting the strategic value and liquidity benefits of the transaction. This acquisition, valued at approximately C$250 million, is anticipated to be completed in the second half of 2025, pending necessary approvals.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.