Watch Robinhood stock as the company embarks on an ambitious growth plan, Goldman Sachs said. The bank upgraded online brokerage to buy from neutral. Its $46 per share price target, up from $40, implies 18% upside from Thursday’s close. Robinhood held its first ever investor day on Wednesday, which was viewed largely positively from analysts on Wall Street . The company laid out a 10 year company outlook for investors, which included initiatives such as growing its crypto exchange business and a goal of becoming the top active trading platform within the next 24 months. HOOD YTD mountain Robinhood stock. “HOOD has successfully migrated from a fast growing, periodically profitable online broker servicing mostly younger investors, to a best-in-class top and bottom-line asset under custody compounder with a growing total addressable market (TAM),” Goldman Sachs analyst James Yaro said. Yaro thinks Robinhood can benefit in the near-term from growing its market share of active traders using its platform. Longer term, Yaro sees an opportunity to make good on its ambitions of growing internationally and entering the wealth management sector. “HOOD offers best-in-class, sustainable asset growth and revenue growth, and robust operating leverage, driving sustained GAAP profitability potential, with potential near-term earnings upgrades from continued improvements in the retail trading backdrop,” he said. Robinhood shares rose more than 1% in the premarket following the upgrade. Year to date, the stock is up more than 200%, boosted in part by hope that a second Trump term will lead to deregulation for crypto and the broader finance sector. Analysts are generally bullish on the stock. Of the 17 who cover it, 10 have a buy or strong buy rating on Robinhood, according to LSEG.
Goldman Sachs upgrades HOOD