Barclays Cuts Robinhood Target, Downgrades Coinbase Ahead Of Q1 Earnings

• Barclays cut Robinhood’s price target to $89 on Wednesday, but maintained an ‘Overweight’ rating.
• The firm downgraded Coinbase to ‘Underweight’ with a $140 target on declining trading volumes.
• Barclays  flagged weaker retail activity, with Coinbase EBITDA seen below Street expectations.

Barclays on Wednesday lowered its price target on Robinhood Markets Inc. (HOOD) and downgraded Coinbase Global Inc. (COIN) ahead of the companies' first-quarter results, citing weaker trading volumes and low revenue expectations across the sector.

The firm cut Robinhood’s price target to $89 from $124 but maintained its ‘Overweight’ rating. Barclays pointed to weaker revenue realizations and expectations for less constructive messaging in the first quarter, according to TheFly.

In contrast, Coinbase was downgraded to ‘Underweight,’ a rating that signals expected underperformance. Barclays lowered Coinbase’s price target to $140, citing a decline in trading volumes during the first quarter and warning that the weakness could persist into the second quarter without improvement in regulatory clarity or broader market conditions.

HOOD’s stock soared by 6% in morning trade amid a broader rally in the cryptocurrency and equities market after President Donald Trump announced a temporary ceasefire with Iran. On Stocktwits, retail sentiment around HOOD moved to ‘bullish’ from ‘neutral’ territory, while chatter around it changed to ‘normal’ from ‘low’ levels over the past day.

Furthermore, Keefe Bruyette reinstated Robinhood (HOOD) coverage with a ‘Market Perform’ rating and $75 price target.

Barclays Flags Weak Retail Activity Ahead Of Q1

Barclays said Coinbase’s earnings before interest, taxes, depreciation, and amortization (EBITDA) was estimated to be about 24% below Wall Street analyst expectations, reflecting weaker retail trading activity. The firm added that the first quarter could act as a reset point for broker and crypto-linked stocks as the sector adjusts to lower volumes. 

COIN’s stock was also up by over 2% during morning trade hours. On Stocktwits, retail sentiment around COIN remained in the ‘bearish’ zone, while chatter around it stayed at ‘low’ levels over the past day.

Robinhood Gains Policy Tailwinds

This came after Robinhood was selected on Monday to help develop and operate infrastructure for Trump Accounts alongside The Bank of New York Mellon (BNY). The program involves tax-advantaged investment accounts for US citizens under 18, with government-backed contributions for eligible participants. 

Separately, Cathie Wood’s ARK Invest disclosed fresh purchases of Robinhood shares worth $13 million on Tuesday across multiple funds. ARK Innovation ETF (ARKK) bought 132,116 shares, while ARK Next Generation Internet ETF (ARKW) added 33,607 shares and ARK Fintech Innovation ETF (ARKF) purchased 16,918 shares. 

Read also: Iran Moves To Monetize Hormuz Oil Traffic With Tolls Paid In Bitcoin, Other Cryptocurrencies: Report

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