Robinhood stock price target raised to $110 from $60 at KeyBanc

Investing.com - KeyBanc raised its price target on Robinhood Markets (NASDAQ:HOOD) to $110.00 from $60.00 on Tuesday, while maintaining an Overweight rating on the stock. The stock, currently trading at $93.76 and up 14% in the past week, sits near its 52-week high of $94.24. According to InvestingPro analysis, technical indicators suggest the stock is in overbought territory.

The price target increase follows Robinhood’s first-ever crypto user event held Tuesday, where the company showcased new product innovations and geographic expansion plans. KeyBanc highlighted the introduction of tokenized U.S. equities for Robinhood users in the European Union as a significant development. The company’s strong execution has contributed to impressive revenue growth of nearly 60% and a market capitalization of $83 billion.

Robinhood also announced expanded cryptocurrency trading coverage across the entire EU and European Economic Area, broadening from its previously limited set of countries. The company further enhanced its product offerings by making perpetual futures available in the EU market.

KeyBanc noted these announcements demonstrate "first-rate innovation" and represent total addressable market expansion for the company. The firm views these developments as positive factors supporting the substantial price target increase.

The analyst also mentioned updating financial models to incorporate several intra-quarter data points, including regular monthly data releases and one-time product disclosures from Robinhood. Trading at a P/E ratio of 54.5, InvestingPro analysis indicates the stock is currently overvalued, with 12 additional ProTips available for subscribers looking to make informed investment decisions.

In other recent news, Robinhood Markets has been the focus of several investment firms, each raising its stock price target based on various strategic initiatives and performance metrics. Cantor Fitzgerald increased its target to $100, citing Robinhood’s expansion into cryptocurrency as a key driver for future revenue and earnings growth. Mizuho (NYSE:MFG) also raised its target to $99, emphasizing Robinhood’s rapid product innovation and availability in over 30 countries, alongside new offerings like stock tokens and crypto perpetual futures. Meanwhile, Robinhood has launched tokenized U.S. stocks for European Union customers, allowing them to trade over 200 U.S. stocks and ETFs through a partnership with blockchain firm Arbitrum.

Goldman Sachs set its price target at $91, noting mixed June metrics with higher equity and option volumes but lower cryptocurrency trading volumes. Despite lowering its earnings per share estimates for 2025 and 2026, Goldman Sachs remains optimistic about Robinhood’s long-term growth due to its product launches and geographic expansion. Compass Point raised its target to $96, highlighting multiple growth trends, including the retail trader market and efficiencies from blockchain technology. The firm noted Robinhood’s strong year-to-date performance and sees continued upside potential despite a more expensive valuation. Each of these developments underscores Robinhood’s ongoing efforts to diversify and innovate within the financial services sector.

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