Robinhood Price Target Cut Again, But Analysts Still See 46% Upside

• Truist cut Robinhood’s price target to $100 from $120, citing weaker crypto prices and trading volatility on Monday.
• Barclays also lowered its target, pointing to declining trading volumes and softer revenue expectations.
• HOOD trades near $70, while the average price target of $103 implies about 46% potential upside, according to KoyfinAI.

Robinhood Markets Inc. (HOOD) was in focus on Monday after Truist reduced its price target to $100 from $120 while retaining a Buy rating, citing recent trading behaviors and near-term revenue pressure, according to TheFly.

Prior to Robinhood's first-quarter (Q1) report, the company modified its model to reflect trading behavior in February and March. Truist stated that the company has faced challenges due to lower crypto prices and volatility in high-beta equities, which have reduced transaction-based income. Despite this, analysts noted that the stock has recently stabilized around $70, making it an opportunity to buy.

Truist noted that Robinhood is well-positioned for long-term growth, estimating that the platform's assets would grow by more than 20% per year over the next three years. According to Truist, Robinhood is well-positioned for long-term growth and could increase assets by more than 20% a year over the next three years.

Barclays Also Turns Cautious

The price target reduction comes after a more general wave of cautious sentiment in crypto stocks. Last week, Barclays also reduced its price target for Robinhood from $124 to $89, but kept its "Overweight" rating. As trade volumes decreased, the company reported lower revenue realization and anticipated softer commentary in the first quarter.

Valuation Signals Upside Potential

Robinhood stock was trading at about $70.87, up over 2% in afternoon trade. But the average analyst price target is about $103.77, representing an upside of about 46% from current levels, according to KoyfinAI. On Stocktwits, retail sentiment around HOOD remained in the ‘bullish’ zone, while chatter dropped to ‘normal’ from ‘high’ levels over the past day.

Even if companies like Truist and Barclays have recently lowered their price targets, the general consensus still signals significant long-term upside. This is because they expect user assets to keep growing and the platform to keep expanding over the next few years.

Positive policy advancements have also helped Robinhood. In collaboration with The Bank of New York Mellon, the company was selected to assist with the development of the infrastructure for "Trump Accounts," a program designed to provide tax-advantaged investment accounts for U.S. residents under the age of 18.

Read also: The Question Isn’t If Stablecoin Yield Should Be Banned, But What Happens If It Isn’t, Says The ABA On CLARITY Debate

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