KeyBanc analysts increased their price target for Robinhood Markets (NASDAQ:HOOD) to $23 from $22 and maintained their Overweight rating on the stock. The analysis predicts revenue surpassing Street expectations, primarily driven by a significant surge in cryptocurrency trading volume, which increased by 97% quarter-over-quarter in the first quarter of 2024.

This growth is expected to contribute positively to profitability due to Robinhood's largely fixed expense base. Additionally, the company experienced a 13% increase in equities volume and a 3% rise in options contract volume during the same period.

The analysts anticipate that margins and the effectiveness of revenue conversion will be key focal points for investors. Net deposits will also be under scrutiny. Looking forward, the analysts are keen on updates regarding Robinhood's launch in the U.K., the timing of futures trading introduction, and further details on the company's recent credit card launch. These factors collectively contribute to the raised price target and optimistic outlook for Robinhood.