Piper Sandler maintains Robinhood stock rating after Bitstamp deal

Published 03/06/2025, 14:40
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On Tuesday, Piper Sandler analysts reiterated their Overweight rating and $70 price target for Robinhood Markets stock (NASDAQ:HOOD). The stock has shown remarkable momentum, delivering a 219% return over the past year and currently trading near its 52-week high at $69.82. According to InvestingPro data, the company’s market capitalization has reached $61.58 billion. This decision follows Robinhood’s announcement of the completion of its acquisition of European crypto exchange Bitstamp for $200 million in cash.

Robinhood first announced the acquisition deal on June 6, 2024. The company disclosed that Bitstamp serves 500,000 retail and 5,000 institutional customers. Bitstamp’s updated revenue figure was reported at $95 million for the 12 months ending April 30, 2025, nearly doubling the $50 million revenue reported when the deal was initially revealed. This acquisition comes as Robinhood demonstrates strong financial performance, with revenue growth of 59.65% and a healthy profit margin of 91%.

The acquisition marks Robinhood’s first exposure to institutional crypto clients, broadening its reach in the cryptocurrency sector. This strategic move is seen as a significant step in expanding Robinhood’s crypto business and establishing a brand presence in European markets.

The company expressed potential plans to launch additional brokerage services, such as cash equities and options, in the European region, leveraging its newly acquired platform and customer base.

Piper Sandler analysts view the acquisition positively, indicating it strengthens Robinhood’s position in the competitive cryptocurrency market while enhancing its service offerings in Europe.

In other recent news, Robinhood Markets announced the expansion of its desktop platform to the United Kingdom (TADAWUL:4280), aiming to reach more retail investors with advanced trading tools. This strategic move aligns with the company’s ongoing efforts to broaden its global presence. On the financial front, Needham has raised its price target for Robinhood to $71, maintaining a Buy rating, citing the company’s product expansion in the cryptocurrency sector as a key driver. Meanwhile, Piper Sandler reaffirmed its Overweight rating on Robinhood with a $70 price target, emphasizing the company’s potential benefits from a continued bitcoin bull run.

In contrast, Keefe, Bruyette & Woods maintained a Market Perform rating with a $47 price target, noting that Robinhood’s trading volumes for options and cryptocurrencies have been slightly below expectations. The firm’s second-quarter earnings per share estimate for Robinhood is $0.33, which is above the consensus of $0.29. Additionally, Robinhood experienced a 4.7% decline in its stock, alongside other cryptocurrency-linked stocks, following Moody’s downgrade of the U.S. credit rating. These developments highlight the dynamic environment in which Robinhood operates, including its strategic moves and analyst evaluations.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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