Robinhood Markets’ Price Target Slightly Raised at Deutsche Bank

Deutsche Bank analysts raised their price target for Robinhood Markets (NASDAQ:HOOD) to $20 from $19 while maintaining their Hold rating on the stock.

The analysts revised their estimates for Robinhood following the May metrics report and a recent discussion with the company's investor relations. Despite encouraging customer growth, with a 35% annualized increase in client asset organic growth and a 10% rise in margin balances, the analysts noted a modest decline in crypto volumes, leading to a slightly lower transaction revenue forecast for the second quarter compared to previous estimates. This decrease is partially offset by higher revenue forecasts from options and equities trading due to better volume trends in the second quarter.

Additionally, the analysts adjusted the net interest revenue forecast slightly downward, resulting in a revised adjusted EBITDA forecast for the second quarter of $270 million, down from the previous $286 million.

While several trends are promising, the analysts believe the stock is fairly valued at current levels and thus maintain a Hold rating. The increased price target to $20 reflects higher EPS expectations.