3 weeks ago
Robinhood’s (HOOD) beardown second-quarter net Wednesday evening person prompted Wall Street to rise its expectations for the stock, but the humble boosts suggest the radical believes overmuch upside has been priced in.
Shares are trading somewhat higher Thursday greeting astatine $106.50.
Citi, which lifted its terms people to $120 from $100, continued with a neutral standing connected the stock. Even aft revising his net estimation sharply higher, expert Christopher Allen warns that overmuch of Robinhood’s aboriginal maturation is already priced into the stock, which has astir tripled from its mid-April debased and is higher by a whopping 420% year-over-year.
Also standing HOOD neutral, JPMorgan expert Kenneth Worthington boosted his December 2026 terms people to $104 from $98, citing a “nearly cleanable operating situation with meaningful volatility, robust retail engagement, and historically elevated rates arsenic some its trading and rate-sensitive segments performed well.” The firm's acquisition of crypto speech Bitstamp helped Robinhood station $160 cardinal successful crypto gross — astir 16% of its full — fueled by $6.7 cardinal successful notional trading measurement from Bitstamp.
Keefe, Bruyette & Woods — besides neutral — raised its people to $106 from $89, emphasizing gains successful securities lending and a rebound successful crypto trading, peculiarly from Bitstamp. The steadfast besides revised its EPS estimates upward for the adjacent 3 years, citing expanding idiosyncratic engagement and improved margins.
Cantor Fitzgerald’s Brett Knoblauch — unsocial among this radical with a bargain standing connected HOOD — raised his terms people from $100 to $118, suggesting a humble 10% upside from existent levels. His squad is present valuing Robinhood astatine 40x 2026 EV/EBITDA and Knoblauch believes the institution has country for adjacent much maturation successful crypto, options, and borderline involvement revenue. He pointed to beardown momentum crossed caller products specified arsenic Robinhood Strategies, crypto staking, and the soon-to-launch Robinhood Banking service.
What does this mean for Coinbase’s net aboriginal today?
Robinhood’s crypto gross was bolstered by the summation of Bitstamp’s organization flow, but it besides benefited from retail traders returning to the market. If Coinbase reports akin enactment — particularly from retail — it could awesome a broader resurgence successful crypto engagement. Coinbase’s concern is much heavy reliant connected crypto and organization activity, truthful Robinhood’s beardown results whitethorn foreshadow a bushed if those aforesaid trends played retired connected Coinbase’s platform.
However, Coinbase lacks Robinhood’s diversification into involvement income and securities lending, which insulated Robinhood from volatility successful crypto markets past year. That puts much unit connected Coinbase to amusement that crypto trading volumes unsocial tin thrust net growth. Investors volition beryllium watching closely.
FactSet projects COIN volition study $1.59 cardinal successful gross and $1.25 successful net per stock for the 2nd quarter, some up from the aforesaid play past year. Shares are up 1.6% today, trading astatine $383.56 a piece.
English (US) 