• JPMorgan’s latest target price on HOOD reflects only a 4% upside from Wednesday’s closing price.
• The firm also lowered its target valuation multiple, citing recent softer net deposit growth and a limited outlook for retail engagement going forward, according to TheFly.
• At least six other Wall Street analysts slashed their price targets on HOOD stock this month.

Shares of Robinhood Markets Inc. (HOOD) declined 7% in afternoon trading on Thursday after analysts at JPMorgan slashed their price target by $21 to $92, going into earnings next week.

The price target cut now implies a potential upside of a little over 4% as of Wednesday’s close.

JPMorgan analysts recently spoke to Robinhood management and currently have a ‘Neutral’ rating on the stock. According to analysts, a headline decline in their first-quarter (Q1) estimates was driven primarily by lower net interest revenue and higher expenses, according to TheFly.

JPMorgan also lowered its target valuation multiple, citing recent softer net deposit growth and a limited outlook for retail engagement going forward, according to TheFly.

In April, Morgan Stanley, Truist, KeyBanc, Citizens, Barclays, and Needham were also among the firms that slashed their price targets on the stock. However, Mizuho and Cantor Fitzgerald hiked their targets.

Q1 Report Around The Corner

According to Fiscal AI data, analysts expect Robinhood to report revenue of $1.14 billion and earnings per share of $0.39. 

The company’s EPS has beaten estimates over the past four quarters, but revenue has missed estimates in its last report, according to Yahoo Finance. 

Of the 27 analysts covering the stock, 19 are bullish heading into earnings, with ratings of ‘Buy’ or higher; five rate ‘Hold’, and three ‘Sell’, according to Koyfin data.

HOOD In The News

Earlier on Thursday, the company said it had received in-principle approval from the Monetary Authority of Singapore to offer brokerage services.

"Singapore’s world-class regulatory environment, high rates of digital adoption, and growing population of retail investors make it the ideal hub for our mission,” said Patrick Chan, Head of Asia for Robinhood. “We see enormous potential to democratize the financial markets for a new generation of investors in Singapore.”

On Wednesday, The New York Times reported that Robinhood made its largest private-market investment to date, committing $75 million through its venture arm to OpenAI, following last year's dispute over its tokenized "access" to OpenAI shares, which OpenAI publicly disavowed.

How Did Retail Traders React?

On Stocktwits, retail sentiment about the stock remained‘ bullish, amid ‘high’ messaging volumes over the last 24 hours.

One user on the platform said the stock is a long-term hold for them going into earnings.

Another user expects the stock to breach the $100 mark after the report.

HOOD stock is down over 26% so far this year but up about 86% over the past 12 months.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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