Cantor Fitzgerald has launched coverage of Robinhood Markets (NASDAQ: HOOD) with an Overweight recommendation and a price target of $130.00, the firm announced on Tuesday. That target lies between the analyst high and low targets of $180 and $90, respectively, and comes while Robinhood shares are trading around $107.
The research note framed the firm’s outlook around what it described as an expanding growth runway for Robinhood, driven by secular shifts in digital financial services, a fast pace of product innovation and consistent execution. Cantor Fitzgerald highlighted the company’s recent top-line momentum: revenue grew 74.58% year-over-year over the last twelve months, reaching $4.2 billion.
Among strategic opportunities, Cantor Fitzgerald singled out asset tokenization as a meaningful long-term avenue for growth. The analyst also pointed to Robinhood’s relatively younger customer demographic as a potential source of expanding wallet share as customers’ financial needs become more complex. The firm noted that Robinhood reported an EBITDA of $2.37 billion, and described the company’s balance sheet as debt-free, positioning it to continue investing and to return capital to shareholders.
At the same time, Cantor Fitzgerald characterized the current public-market valuation as attractive and asserted that recent markdowns appear to be driven more by cryptocurrency cyclicality than by any intrinsic weakness in Robinhood’s business model. External valuation measures cited in the research indicate a mixed picture: the company is trading at a P/E of 44.77 and a Price/Book of 11.23 according to InvestingPro data, and Fair Value estimates cited there suggest the stock may be overvalued at current levels.
The firm also cautioned on several risk vectors that could affect the company’s outlook, including asset price volatility, interest-rate movements, legal and regulatory developments, yield compression and intensifying competition. Robinhood’s market volatility is underscored by a beta of 2.45 and a 124% one-year return, metrics the report used to emphasize the stock’s sensitivity to market swings.
For investors seeking additional analysis, the note referenced a Pro Research Report containing deeper insights and a set of 10 exclusive ProTips on the company.
Other corporate and analyst developments noted alongside the coverage decision include the completion of a deal in which Miami International Holdings sold 90% of MIAX Derivatives Exchange to a joint venture formed by Robinhood Markets and Susquehanna International Group, with MIAX retaining a 10% stake. The exchange involved is described as a regulated entity with approvals to list and clear futures, options and swaps.
Analyst activity around the name has been active. Piper Sandler reiterated an Overweight rating, citing Robinhood’s brand recognition among younger traders. Goldman Sachs kept a Buy rating but trimmed its price target to $161, noting expected robust growth tied to product innovation. Separately, Cantor Fitzgerald was also reported to have cut a previously stated price target to $152 while maintaining an Overweight stance following Robinhood’s announcement of agreements to acquire two Indonesian firms.
These developments underscore an industry focus on Robinhood’s strategic moves, financial profile and valuation dynamics as investors weigh growth potential against market and regulatory risks.