Zero-fee stock and cryptocurrency trading app Robinhood (HOOD) hit two lists of top stock ideas on Wall Street. Robinhood stock surged to a new high on Wednesday after massively outperforming the S&P 500 in the past year. Analysts continue to hike price targets.
On Wednesday, Morgan Stanley added Robinhood stock to its "Financials' Finest" list, according to TheFly.com. The firm's analysts said they see a sustainable business model, as "opposed to a meme stock," with many growth drivers. The firm has a $55 price target on overweight-rated shares.
On Tuesday, Bernstein named Robinhood its new "Best Idea in Global Digital Assets" as well. The firm's analysts expect the Robinhood Crypto business to benefit as the regulatory environment for cryptocurrencies becomes more favorable. Incoming President Donald Trump has a friendly view of digital currencies. Analysts at Bernstein see more upside for Robinhood stock, which soared in 2024. They set a price target of $51 on outperform-rated shares.
HOOD shares leapt up 9.8%, near 46, in Wednesday's stock market trading, clearing a short consolidation. Robinhood stock extended Tuesday's 5.5% rally. The online brokerage stock has bagged a nearly 24% gain in this young year and has more than quadrupled in the past year, skyrocketing around 315%.
Those gains left rival online stock or cryptocurrency brokers Charles Schwab (SCHW), Coinbase (COIN) and Interactive Brokers (IBKR) in the dust, even though the former rose in the past year and the latter two nearly doubled or more.
On Wednesday, the biggest bank stocks generally jumped amid stronger-than-expected earnings. Bitcoin rebounded back above $99,000.
Robinhood has been profitable for the past several quarters, on robust double-digit revenue growth.
On Monday, Robinhood agreed to pay $45 million in penalties to settle an investigation by the Securities and Exchange Commission. The agency accused the firm of failing "to observe a broad array of significant regulatory requirements, including failing to accurately report trading activity, comply with short sale rules, submit timely suspicious activity reports, maintain books and records, and safeguard customer information."
As regulatory clouds lift, Robinhood stock continues to earn price-target hikes.
This week, JMP Securities raised its price target on outperform-rated Robinhood stock to $60 from $53, TheFly.com said. The firm anticipates a more favorable regulatory environment for financial services and financial technology companies under the incoming administration, JMP analysts said in a note. They named HOOD among the top four stock ideas with the most compelling risk-reward profile.
Barclays hiked its price target on outperform-rated HOOD stock as well, to $54 from $49. Trading activity and account gathering remain generally robust, with Robinhood likely to deliver a "very strong beat," the firm's analysts said. Robinhood is expected to next report earnings in February.
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