.August 15, 2024 10:16 AM

Shares of Robinhood Markets (NASDAQ:HOOD) surged over 5% today following an upgrade from Deutsche Bank to a Buy rating with a new price target of $24. The analysts praised Robinhood’s strong growth potential and leadership in simple brokerage trading, highlighting the management team’s ability to expand into digital financial services.

Analysts anticipate Robinhood achieving long-term earnings growth through increased transaction revenue and cost control in a more diversified business model. While crypto transaction revenue estimates are seen as conservative, future revenue is expected to be less reliant on this source as customer growth in equities and other products continues.

Robinhood’s growth initiatives, such as expanding its Gold subscription service, introducing 24-hour stock trading, launching retirement accounts, and international expansion, have analysts optimistic about the company’s future success. Bedell sees Robinhood as an attractive investment with a favorable risk/reward profile.