From Financial Modeling Prep: 2024-10-17 12:47:00

JPMorgan analysts raised Robinhood Markets (NASDAQ:HOOD) price target to $21 from $17 ahead of third-quarter 2024 earnings. They anticipate end-of-quarter flows to reach $11.2 billion, projecting strong year-over-year growth in trading activity with DARTs expected to rise by 30% for equities and 50% for options and crypto, resulting in $325 million in transaction revenue.

Investors are focused on Robinhood’s net interest income as rates decline. Management believes increased trading could offset NII declines. Analysts agree, noting a positive market environment could mitigate rate impacts, especially with securities lending revenue trends following the Fed’s outlook into 2025.

Expense projections for the third quarter are estimated at $488 million, reflecting additional share-based compensation and costs related to mergers, acquisitions, and legal expenses. The revised price target and outlook highlight Robinhood’s resilience amid market fluctuations and growth in core trading areas, despite ongoing challenges in the margin and securities lending environment.



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