Robinhood Markets (NASDAQ:HOOD) shares rose more than 5% intra-day today after Deutsche Bank upgraded the company to a Buy rating, raising the price target from $21 to $24. The analysts highlighted Robinhood's strong growth potential, citing its leadership in simple brokerage trading and the management team's ability to expand into various digital financial services areas.

Robinhood is expected to achieve long-term earnings growth through increased transaction revenue and effective cost control within a more diversified business model. While the analysts acknowledged that the company's crypto transaction revenue estimates remain conservative, they anticipate future revenue will become less reliant on this source, as customer growth in equities, options, and other investment products continues.

The analysts are also encouraged by Robinhood’s growth initiatives, including the expansion of its Gold subscription service, the introduction of 24-hour stock trading, the launch of retirement accounts with matching features, and international expansion through its UK brokerage and European crypto trading. Bedell believes these developments position Robinhood for significant future success, making the stock an attractive investment with a favorable risk/reward profile.