Robinhood Markets (NASDAQ:HOOD) shares rose more than 5% pre-market today after BofA Securities analysts upgraded the company to Buy from Underperform, raising the price target to $24 from $14. The analysts noted that the current entry point for Robinhood is favorable, contrasting with their 2021 Underperform rating following its IPO.

They cited several reasons for the upgrade: rising retail engagement and accelerating organic growth, positive operating leverage after significant expense reductions, and an attractive valuation following increases in EBITDA and EPS.

While Interactive Brokers remains their top broker Buy, and Virtu Financial is highlighted as a stealth way to benefit from retail engagement through payment for order flow.