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On Thursday, Piper Sandler analyst Patrick Moley increased the price target for Robinhood Markets (NASDAQ:HOOD) to $75 from the previous $54, while continuing to recommend the stock with an Overweight rating. According to InvestingPro data, analyst targets for HOOD currently range from $29 to $105, with the stock currently trading above its Fair Value. The adjustment follows Robinhood’s announcement of an earnings per share (EPS) of $1.01, surpassing both Piper Sandler’s estimate of $0.47 and the consensus estimate of $0.42.
The reported EPS includes a one-time tax benefit of $369 million, which contributed $0.41 to the EPS, and a $55 million net benefit from the reversal of a regulatory accrual, adding another $0.06 per share. Even after adjusting for these benefits, Robinhood would have reported a robust EPS of $0.54, still ahead of expectations. The company has shown strong revenue growth of 35.7% over the last twelve months, with InvestingPro analysis revealing 13 additional key insights about the company’s performance.
Robinhood’s stock experienced a surge in after-hours trading, climbing more than 20%. This increase is attributed to the company’s strong fourth-quarter performance, encouraging January metrics, and several positive updates on its product development pipeline. The stock has delivered impressive returns of over 370% in the past year and is currently trading near its 52-week high of $57.27.
Moley expressed confidence in Robinhood’s potential for growth and success in various aspects of its business. He highlighted the company’s ability to execute on its plans effectively. The new $75 price target set by Piper Sandler is 34% higher than Robinhood’s closing price of $55.91.
In other recent news, Robinhood Markets has been the focus of various analysts following its substantial fourth-quarter results. Mizuho (NYSE:MFG) Securities raised its price target for Robinhood to $80, citing a significant uptick in user engagement and assets under custody. Similarly, Bernstein SocGen Group increased the price target to $105, highlighting a 487% sequential growth in crypto revenues.
Keefe, Bruyette & Woods maintained a steady price target of $38, acknowledging Robinhood’s higher-than-expected revenues and lower stock compensation expenses. Analysts from Citi also revised their price target to $60, attributing this to Robinhood’s robust performance and favorable crypto market conditions.
JMP Securities increased their price target for Robinhood to $77, noting the company’s expansion into new markets and potential for further innovation. These recent developments underline the analysts’ confidence in Robinhood’s growth trajectory and its ability to capitalize on expanding opportunities in the financial services sector.
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