Wall Street analysts bet on Robinhood's potential to add users

FILE PHOTO: The logo of Robinhood Markets, Inc. is seen at a pop-up event on Wall Street after the company’s IPO in New York City

By Aniruddha Ghosh

(Reuters) – Wall Street analysts on Monday took a largely upbeat view on Robinhood Markets Inc in their first ratings on the stock as they bet on the online brokerage's ability to boost its user base, days after it warned of easing retail trading frenzy.

At least six brokerages that participated in Robinhood's IPO started coverage after the quiet period following the stock's market debut expired. Three of them rated it “buy” or its equivalent and another two recommended a “hold” rating.

J.P.Morgan Securities was the lone bearish voice with an “underweight” rating, citing several risks, including regulation, pricing, and market saturation.

To be sure, all analysts have raised doubts about the near-term uncertainty about how sustainable the frantic levels of retail trading that fueled its second-quarter growth would be.

But they were largely upbeat when it came to the company's long-term growth prospects. “We believe HOOD is well-positioned to continue to see best-in-class user growth, leveraging its innovative referral program and strong word-of-mouth customer acquisition,” Goldman Sachs analysts said in a note, rating the stock “neutral”.

Robinhood's shares were up 2.25% at $43.64, compared with the median price target of $55, according to Refinitiv Eikon data.

“We expect HOOD will be a continued beneficiary of its strong brand recognition among younger investors, built through an effective, incentive-driven client acquisition model,” Piper Sandler said, starting coverage with a “neutral” rating.

Robinhood's trading app emerged as the gateway for investors seeking to get in on this year's mania for so-called meme stocks, but in its first earnings report as a public company last week it said it expects retail traders to become less active in the third quarter.

“We view Robinhood not as a meme stock phenomenon, but as a singularity that captures Generation Z's zeitgeist,” Mizuho analysts said, giving a “buy” rating.

(Reporting by Aniruddha Ghosh in Bengaluru; Writing by Tanvi Mehta; Editing by Sriraj Kalluvila and Arun Koyyur)

Internet Explorer Channel Network
News Related

OTHER NEWS

‘Vampire' Serial Child Killer Who Escaped From Prison Is Beaten to Death by Vigilantes

© Provided by The Daily Beast DCI Kenya A man described by Kenyan authorities as a “bloodthirsty vampire” who allegedly killed at least ten children, in some cases by sucking ... Read more »

Flat Earth theorist, anti-vaxxer Rob Skiba dies from COVID: report

A champion of the flat Earth movement has reportedly lost his battle with COVID-19. © Provided by New York Daily News Rob Skiba in “Scientism Exposed 2.” Rob Skiba — ... Read more »

NC state rep says Dan Bishop lacks 'good will' needed for member of Congress

North Carolina state Rep. Charles Graham (D) says Rep. Dan Bishop (R-N.C.), whom he is running to unseat, doesn’t “represent the good will” needed in a member of Congress. © ... Read more »

Giants place Justin Hilliard on injured reserve

© Provided by NBC Sports The Giants added linebacker Justin Hilliard to the practice report Thursday with an ankle injury. A day later, they placed Hilliard on injured reserve, Pat ... Read more »

Man tied to QAnon conspiracy announces bid for Congress

A website administrator that many consider to be behind the QAnon conspiracy movement that fired up supporters of Donald Trump has announced he will run for a Republican seat in ... Read more »

Obama to attend Glasgow climate summit, meet with youth activists

© Reuters/MARCO BELLO Former U.S. President Barack Obama looks on during a drive-in campaign rally on behalf of Democratic presidential nominee and former Vice President Joe Biden in Miami By ... Read more »

Arsonist caught with phone in jail snapped it in half before handing it to officers because of ‘prison politics'

A convicted arsonist caught with a mobile phone in jail snapped it in half before handing it over to officers because of “prison politics,” a court heard. Paul Crosby (26), ... Read more »

Men found with a loaded handgun outside Dublin shopping centre after off-duty garda spotted them running from a car

TWO men were found with a loaded handgun in a bag in the middle of the day outside a busy Dublin shopping centre after an off-duty garda spotted them running ... Read more »

Bhupen Khakhar painting of Indian working classes drinking chai expected to fetch crores at Sotheby's auction

© Provided by The Times of India LONDON: A Bhupen Khakhar oil painting titled “Krishna Hotel” depicting ordinary Indians having snacks and chai on battered-looking café tables, which has not ... Read more »

Liquid ambitions

Changing weather patterns and recurrent droughts have left 250 of India’s 700 districts with ‘critical’ or ‘overexploited’ groundwater levels. Yet the Jal Jeevan Mission aims to pro­vide tap water con­nections ... Read more »

Will Vaulks starts: The predicted Cardiff City XI to face Swansea City this weekend

© Provided by Football League World Vaulks Cardiff City switched to a back four and put in a much improved performance against Reading last time out before the international break. ... Read more »

Aero supplier Spirit says it took action over parts obtained indirectly from MPS

© Reuters/NICK OXFORD FILE PHOTO: The headquarters of Spirit AeroSystems Holdings Inc, is seen in Wichita (Reuters) – Spirit AeroSystems said on Friday it did not buy parts directly from ... Read more »

Former Ireland international striker Simon Cox retires from football

© Morgan Treacy INPHO Simon Cox celebrating a goal against the Czech Republic in 2012. FORMER REPUBLIC OF Ireland striker Simon Cox has retired from football aged 34. Cox, who ... Read more »

Five from state held for killing Goa parking attendant

© Provided by Hindustan Times The victim, Sagar Naik, 45, who hailed from Anjuna, worked as a parking attendant at the parking lot at the entrance to Goa’s famous Anjuna ... Read more »

Idol immersion, effigy burning mark end of Durga Puja and Dussehra festivities in Ghaziabad

© Provided by Hindustan Times Small Ravan effigies at Ghantaghar Ramlila Maidan in Ghaziabad on Friday. (Sakib Ali / HT) The week-long Durga Puja and Dussehra festivities ended on Friday ... Read more »

Unicorn diaries: How to make a billion

According to Nasscom, India gained 28 new unicorns—start-ups valued at $1 billion or more—in the first nine months of 2021, taking the total to 66. These firms have a combined ... Read more »

John Le Carré: Spy author's letters and unpublished work could be released

© Christian Charisius/DPA John Le Carré – Christian Charisius/DPA John Le Carré left behind unpublished work which could be released, his agent has revealed. Speaking at the Cheltenham Literature Festival, ... Read more »

Inside ‘Little People' stars Zach, Tori Roloff's new $1M Washington house

“Little People, Big World” stars Tori and Zach Roloff shelled out nearly $1 million for a new Washington house — bringing rumors that they might be leaving the TLC show. ... Read more »

Nettie Davis, Charles Penson plead not guilty after first court appearance

Oct. 15—TUPELO — Nettie Davis, a longtime member of the Tupelo City Council, and Charles Penson, a leader in the local Democratic Party, have pleaded not guilty to misdemeanor charges ... Read more »

Pedro Martinez reveals story of infamous Don Zimmer brawl

Pedro Martinez never felt worse than the moment in the 2003 ALCS when he threw New York Yankees bench coach Don Zimmer to the ground during a dugout-clearing brawl. It’s ... Read more »

Repeat offender facing multiple charges following MCSO pursuit

Oct. 15—BECKER — An Oct. 12 pursuit involving the Monroe County Sheriff's Office led to multiple charges for a repeat offender with a criminal history of stolen property and narcotics. ... Read more »

New Zealand government wizard fired over joke about hitting women: ‘I don't like being canceled'

Ian Brackenbury Channell has been known as the Wizard of Christchurch since 1998. Getty Images New Zealand’s government wizard is going to wish there was a spell to get rid ... Read more »

Man shot dead by police was not a danger to anyone, family says after inquest

There was nothing to suggest a “confused and frightened” man who was shot dead by police “was aggressive or a danger to anyone on that day”, his family said after ... Read more »

Why the 1980s was the greatest pop music decade of them all

I SEEM to have spent most of my life trying to redeem the Eighties. In fact, I have spent my entire journalistic career trying to redeem them. The Eighties was ... Read more »

Woman shares how often you should REALLY clean your washing machine after being disgusted by dishwasher tablet hack

A WOMAN was left horrified when she realised how dirty her washing machine really was after popping in a dishwasher tablet for the first time. TikTok user @jojo_con82 said she ... Read more »

Delta Variant Spread Extends Pandemic-Era Financial Struggles for US Families

© fstop123 / Getty Images/iStockphoto Close-up view of African descent, senior adult couple work together to pay their monthly bills. More than a year and a half into the COVID-19 ... Read more »

Earnings are the big catalyst for stocks in the week ahead, as Tesla and Netflix report

Earnings could decide the fate of the mid-October market rally, as dozens of companies report in the week ahead. “We’ll have a better idea once we get through all these ... Read more »

6 Coolest Ways You Can Use Your Credit Card Points

© Shutterstock.com Astronaut in space Whether you’ve earned credit card points as a new member bonus, for making purchases or participating in a loyalty program, at some point, it’s wise ... Read more »

Steam is kicking all blockchain games off the store

© Provided by GamePur A number of Steam games are about to be de-listed due to their connection to the blockchain. This is due to new guidelines for publishing on ... Read more »

Braids/Cheer Up Slug review – lively double bill mines young identity

What are the chances of the Durham miners’ gala making an appearance in two consecutive plays? That’s the case in this lively double bill by young north-east writers. On both ... Read more »

Edinburgh cobbles could be ripped up and TARMACKED

© Provided by Daily Mail MailOnline logo Residents are lobbying for iconic cobbled streets in Edinburgh to be ripped up and covered with tarmac- because they are ‘too noisy.’ Neighbours ... Read more »

Can you play Battlefield 2042 Hazard Zone solo?

Battlefield 2042 developer DICE has finally pulled back the curtain on the Hazard Zone mode in all its glory. While the reveal trailer shows only a few seconds of actual ... Read more »

Government accused of ‘shirking responsibility' in bid to overturn ruling against Aboriginal deportation

The lawyer for two men who won a landmark high court case preventing deportation of Aboriginal Australians has accused the Morrison government of attempting to “shirk responsibility” by seeking to ... Read more »

US Capitol police officer charged with helping rioter hide evidence of involvement in Jan 6

A US Capitol Police officer has been indicted on charges of obstruction of justice after he told a Facebook contact to remove online posts from the insurrection on 6 January. ... Read more »

‘Control at the end of their lives': the final push to legalise voluntary assisted dying in NSW

As Bruce Hays was dying of cancer, his wife Sue’s overwhelming emotion was one of powerlessness. “It was like being in suspended animation,” she says from her home in Milton ... Read more »

Tottenham: Two Spurs players test positive for coronavirus following international break

Both men, who trained with the group on Thursday, were shown to have contracted Covid-19 after tests in the last 24 hours; a significant contingent of the club's playing squad have been away on international duty Read more »

FIFA 22 Road to the Knockouts Team 1 Released: Everything You Need to Know

FIFA 22 Road to the Knockouts Team one has been announced on EA Sports‘ twitter. The player cards will become available in packs today, Oct. 15. The RTTK players also ... Read more »

What is the easiest fish to catch in Far Cry 6?

In Far Cry 6, you are able to catch fish for resources in the game, and usually, if you don’t want to partake in this activity, you can ignore it ... Read more »

Activision offers update on Call of Duty's RICOCHET anti-cheat after part of it reportedly leaked yesterday

Activision gave an update on Call of Duty’s RICOCHET anti-cheat system today, saying that it’s provided a pre-release version of the driver to “select third parties.” © Provided by Dot ... Read more »