.August 5, 2024 2:33 PM

Citi analysts upgraded Robinhood Markets (NASDAQ:HOOD) to Neutral from Sell, with a new price target of $18. Shares dropped nearly 12% on concerns over lower interest rates, but recent fundamentals show growth in deposits, margin balances, and trading activity.

The upgrade by Citi comes ahead of Robinhood’s second-quarter earnings report on August 7. Positive updates on growth initiatives like UK expansion and the Gold card are expected, along with a favorable outlook on the company’s fundamentals.

Currently, Robinhood shares are trading over 7% down intra-day, following a recovery from a significant drop of around 20% earlier in the morning.