Robinhood Gets Price Target Hike From JPMorgan After New Product Rollout: Is Retail More Bullish?

Shares of Robinhood Markets, Inc. ($HOOD) are trending among retail investors on Stocktwits, ranking among the top 15 symbols early Thursday.

JPMorgan analyst Kenneth Worthington raised the brokerage’s price target on Robinhood to $21 from $17 while maintaining an ‘Underweight’ rating on the stock.

The price target adjustment comes ahead of Robinhood’s Q3 earnings report scheduled for Oct. 30.

Worthington noted that after a volatile August that boosted volumes and deposits, September was slower for the company. He believes that positive market conditions supporting the asset base will help mitigate declines in net interest income revenue.

On Stocktwits, sentiment among HOOD’s 61,000-plus followers turned ‘bullish’ despite the stock trading slightly lower on Thursday morning.

One user saw a “huge buying opportunity” and predicted the stock would reach the $30 level soon, while another remarked on the company’s latest product release.

The note from JPMorgan comes just a day after Robinhood’s unveiling of new products at its HOOD Summit in Miami, aimed at attracting more advanced traders.

Its new offerings include futures trading and index options, as well as a new web-based platform called Robinhood Legend.

Additionally, Robinhood partnered with Cboe Global Markets to introduce index options on its platform.

The ability to trade futures, which includes contracts on the S&P 500, oil, bitcoin, metals, and currencies, was highly requested by customers, according to the company.

By catering to active traders — its most profitable customer base — Robinhood aims to bolster its revenue, which totaled $327 million in transaction-based revenue in the second quarter.

However, this revenue relies heavily on payment for order flow, a practice currently under SEC scrutiny, alongside regulatory challenges in its crypto business.

As a result, the company is focused on diversifying its revenue streams to safeguard against potential regulatory actions.

So far in 2024, HOOD stock has surged over 110%.

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