Raymond James reiterates Market Perform rating on Robinhood stock

Published 10/07/2025, 11:52
Raymond James reiterates Market Perform rating on Robinhood stock

Investing.com - Raymond (NSE:RYMD) James has reiterated its Market Perform rating on Robinhood Markets (NASDAQ:HOOD) ahead of the company’s second-quarter 2025 results, due on July 30. The stock has delivered remarkable returns, surging over 320% in the past year and currently trading near its 52-week high of $100.88.

The investment firm acknowledged Robinhood’s strong recent momentum, highlighting "remarkably impressive account and deposit growth" alongside elevated trading volumes that have boosted the company’s performance. According to InvestingPro data, this momentum is reflected in the company’s robust revenue growth of nearly 60% over the last twelve months.

Despite these positive trends, Raymond James believes Robinhood’s current valuation already reflects this strength, suggesting limited upside potential at current price levels.

The firm indicated that further share price appreciation would require "sustainably high transaction volumes and/or limited downside to short-term interest rates" - assumptions that Raymond James is "not comfortable forecasting" at this time.

Raymond James concluded that it does not find the risk/reward profile attractive for Robinhood shares at current levels, maintaining its neutral stance on the stock.

In other recent news, WonderFi Technologies Inc. has received backing from major advisory firms for its proposed acquisition by Robinhood Markets, Inc. Glass Lewis (JO:LEWJ) and Institutional Shareholder Services have both recommended that WonderFi shareholders vote in favor of the deal, which involves Robinhood’s subsidiary acquiring all outstanding shares at C$0.36 each. This transaction is part of a broader trend of consolidation within the cryptocurrency trading sector. Meanwhile, Datadog Inc (NASDAQ:DDOG). is set to join the S&P 500 index, replacing Juniper Networks Inc (NYSE:JNPR)., following Juniper’s acquisition by Hewlett Packard Enterprise Co (NYSE:HPE). This inclusion marks a significant milestone for Datadog, reflecting its growing market presence.

Robinhood Markets has seen several analysts raise their stock price targets due to its recent strategic initiatives. KeyBanc increased its target to $110, citing Robinhood’s crypto user event and product innovations in the European Union. Cantor Fitzgerald also raised its target to $100, emphasizing Robinhood’s deeper expansion into cryptocurrency as a key growth driver. Similarly, Mizuho (NYSE:MFG) increased its target to $99, highlighting Robinhood’s rapid product development and expanded availability across the EU. These developments underscore Robinhood’s efforts to broaden its offerings beyond traditional stock trading.

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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