- Robinhood Markets Inc. shares increased by over 6% on Wednesday after Deutsche Bank reaffirmed its bullish outlook.
- Deutsche Bank analyst Brian Bedell maintained a 'Buy' rating with a revised price target of $121, indicating a potential 75% upside.
- Earlier this month, Bedell lowered the price target from $75 to $61 but recently revised it upward, reflecting increased optimism about Robinhood's growth.
Shares of Robinhood Markets Inc. (HOOD) went up after Deutsche Bank reaffirmed its bullish stance on the retail trading platform on Wednesday, citing growing opportunities in prediction markets and broader product expansion.
HOOD’s stock was up over 6% in intraday trade, extending recent gains. On Stocktwits, retail sentiment around Robinhood improved to ‘neutral’ from ‘bearish’ territory, while chatter rose to ‘high’ from ‘neutral’ over the past day.
Deutsche Bank analyst Brian Bedell reiterated a ‘Buy’ rating on the stock and set a $121 price target, a 75% upside, following an investor meeting with company management, as per TheFly. The firm viewed Robinhood as positioning itself to become a leader in the emerging prediction markets space.
Bedell claimed that Robinhood's strategy is multifaceted, encompassing retail involvement, market-making capabilities, expansion into exchange products, and a longer-term push into institutional offerings focused on event-based contracts.
Although prediction markets are currently linked to industries like sports, the analyst pointed out that over time, the segment is expected to evolve into broader financial and real-world event markets. Deutsche Bank said it is confident in Robinhood’s ability to diversify its revenue streams beyond traditional trading, which is why the company remains its top choice for growth among online brokers.
Buyback Plan And Bullish Outlook Drive Momentum
Earlier this month, Bedell had maintained a ‘Buy’ rating on the stock, though he lowered his price target to $61 from $75, according to reports. The latest update marks a sharp upward revision in expectations, signaling increased conviction in Robinhood’s long-term growth trajectory.
Robinhood's recent gains also come after the company announced a stock buyback program of $1.5 billion on Tuesday. The board-approved repurchase plan, which will last several years, is intended to return capital to investors and support the stock price.
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