Truist Securities has reiterated its Buy rating on Robinhood Markets Inc. and kept a $155.00 price target for the stock, despite a sharp one-day decline. At the $88.99 trading level referenced in market data, the analyst target represents about 74% upside.
Third-party InvestingPro information cited alongside the coverage indicates that Robinhood is trading above its Fair Value and carries a price-to-earnings ratio of 36.8.
Robinhood shares fell 10% on Monday, a move that substantially outpaced the broader market, which was slightly up, and also underperformed other crypto-related equities that slid between 4% and 8%. The stock’s recent price action continues a short-term downtrend: InvestingPro data show a 14.6% decline over the past week and a 20.5% drop year-to-date, even as the share price sits about 73.2% higher than it was a year ago.
The selloff coincided with an approximately 7% drop in Bitcoin prices. Notably, financial sector stocks broadly traded higher during the session and capital markets names were relatively flat, suggesting the magnitude of Robinhood’s move was idiosyncratic rather than reflective of a sector-wide rout.
Truist attributed the disproportionate decline in Robinhood shares to investor concerns about retail investor engagement. Specifically, the firm pointed to reduced activity in high-momentum retail favorites, such as certain metals plays, which have recently experienced price declines. Truist warned that such short-term pressures could affect Robinhood’s asset flows, user growth, and trading activity, but the firm nonetheless retained a positive long-term view on the company.
Several other broker-dealers have also published recent coverage and maintained favorable ratings on Robinhood while acknowledging the pullback in the stock price. Bernstein reiterated an Outperform rating with a $160 price target even as the stock has declined about 21% year-to-date and roughly 41% from its peak. Mizuho maintained an Outperform rating and set a $172 price target, calling attention to Robinhood UK’s launch of a stocks and shares ISA that carries zero platform fees, no commissions, and a 2% cash bonus on new eligible contributions. Piper Sandler likewise kept an Overweight rating and a $155 price target even as Robinhood shares have retraced roughly 35% from their high.
Robinhood UK’s new stocks and shares ISA was highlighted in coverage as a low-cost product offering; the launch reportedly features a 0.10% foreign-exchange fee per trade along with the previously noted cash bonus on qualifying new contributions.
In a separate development that briefly moved the stock, Robinhood’s share price spiked after reports suggested the U.S. federal government might select the company as a trustee for newly proposed custodial accounts described in press reports as "Trump accounts" for children. The Treasury Department is reportedly considering up to three firms for that trustee role, with an announcement reportedly anticipated soon. Market commentary framed these items as examples of continuing interest in Robinhood’s commercial prospects in both the United Kingdom and the United States.
Key points
- Truist Securities reiterated a Buy rating and $155.00 price target on Robinhood, implying about 74% upside from $88.99.
- Robinhood shares dropped 10% on Monday amid a 7% decline in Bitcoin; the stock is down 14.6% over the past week and 20.5% year-to-date but up 73.2% over the past year.
- Other analysts including Bernstein, Mizuho, and Piper Sandler have maintained bullish ratings and price targets, and Robinhood UK launched a stocks and shares ISA with low fees and a cash bonus.
Risks and uncertainties
- Investor concerns about retail trading activity - a decline in retail investor engagement could reduce asset flows and trading volumes, impacting Robinhood’s revenue; this primarily affects the consumer brokerage and fintech sectors.
- Cryptocurrency price volatility - a sharp fall in Bitcoin was associated with the selloff, illustrating how crypto market moves can pressure crypto-related equities and broader fintech sentiment.
- Execution and competition in new markets - while Robinhood UK’s ISA launch is noted, the company’s ability to convert product-rollouts into sustained growth remains an uncertainty for its European and retail brokerage businesses.
This piece summarizes recent analyst activity and market moves tied to Robinhood Markets. The facts reported above reflect the analyst ratings, price targets, and market performance cited in market data and firm commentary.