Robinhood Stock Price Forecast as Goldman Sachs Hikes Target

Key Insights

• The Robinhood stock price rose after a bullish Goldman Sachs forecast.
• Bernstein, Loop Capital, and Argus have upgraded the stock recently.
• Technical analysis points to further gains as its fundamentals improve.

Robinhood stock rose by 1.6% on Monday. It continued the recent recovery that started in March when it bottomed at $63.75.

The stock rose to $100.7 after a top Goldman Sachs analyst boosted the target. Another analyst at Bernstein reaffirmed it. Technicals also suggest that the HOOD shares will continue rising this year.

Goldman Sachs and Bernstein Maintain Bullish Outlook on Robinhood Stock

HOOD stock price jumped as Wall Street analysts maintained their bullish outlook for the company. In a note, Goldman Sachs’ James Yaro hiked his target from $108 to $121. Bernstein maintained its bullish outlook on the company.

Other top analysts recently hiked their outlook on the Robinhood stock as the recovery continues. For example, BTIG Research’s Andrew Harte initiated his coverage of the company and delivered a target of $125. Loop Capital and Argus have placed a target price of $110.

The general view is that Robinhood’s business is doing well. The company’s innovation and the soaring volume in the US helps keeping this a reality. This volume has continued rising after US regulators ended the Pattern Day Trader (PDT) rule that placed limits on traders.

Volume is also rising because of the ongoing AI boom. This has pushed some stocks like Micron, Sandisk, and Western Digital much higher than in the same period last year.

The company is also benefiting from the ongoing boom in prediction markets. There, contracts have continued soaring this year. This growth has accelerated as the World Cup continues.

Robinhood’s other businesses are doing well as it has become the most popular trading platform in the US. For example, its retirement account business has continued seeing substantial asset growth this year.

Its total assets under management have soared to over $27.8 billion from $4.2 billion in the first quarter of last year. This growth will likely continue now that the company has become the main partner for Trump Accounts.

At the same time, Robinhood has become a top player in the subscription business. Its Gold subscription package reached the $4.1 million member milestone. Members receive several benefits for paying a $5 fee a month. Its benefits include a higher yield for their cash and lower feess.

Robinhood’s Revenue Growth to Continue

Robinhood’s revenue may continue to grow this year. The average estimate among analysts is that its revenue will jump by 12.25% this year to $5.02 billion. This growth is expected to get supercharged in the next financial year to $6.20 billion.

The same is expected to happen with its profitability. Analysts predict that its earnings per share will move from $1.87 this year to $2.57 next year.

This will happen as the company finds ways to cut costs, including by leveraging artificial intelligence tools. It recently announced that it was slashing 10% of its workforce.

This growth comes at a time when its valuation multiples have dropped from their historical perspective. Robinhood has a forward price-to-earnings ratio of 20, much lower than the sector median of 33 and its historical average of 53.

Robinhood Stock Price Technical Analysis

The daily chart shows that the Robinhood stock price has soared in the past few months. It has moved from a low of $63.73 in April to $100 today.

It is about to form a mini golden cross, which forms when the 50-day and 100-day moving averages cross each other. This pattern is one of the most common bullish continuation signs in technical analysis.

The stock has already done a break-and-retest pattern by falling to $93.45, its highest point on April 17. This retest normally leads to a bullish continuation.

Therefore, the stock will likely continue rising as bulls target the next key resistance at $110. A move above that price will point to further upside, potentially to $150.

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