BofA Securities analysts who upgraded Robinhood Markets Inc HOOD to a Buy in May are anticipating an earnings beat from the online broker in August.

The Details

BofA Securities released a research note Wednesday touting Robinhood as well-positioned for both near-term and long-term growth. The note highlighted Robinhood's record high trading volumes and more than 40% annualized net new asset (NNA) growth as near-term revenue drivers.

BofA said Robinhood now has an appropriate expense base after multiple rounds of headcount reductions, and the company has reiterated its commitment to cost-conscious growth with approximately 90% of its costs being fixed.

The research firm expects reduced costs coupled with Robinhood's organic growth and strong free cash flow conversions to create "a powerful earnings growth trajectory going forward."

Robinhood is set to report its second-quarter financial results on Aug. 7 after the closing bell.

According to estimates from Benzinga Pro, analysts expect the company to report earnings of 15 cents per share and quarterly revenue of $621.865 million. Robinhood has beat analysts' EPS expectations in each of the past five quarters.

Will HOOD Stock Go Up?

When trying to assess whether or not Robinhood Markets will trade higher from current levels, it's a good idea to take a look at analyst forecasts.

Wall Street analysts have an average 12-month price target of $22.53 on Robinhood Markets. The Street high target is currently at $30 and the Street low target is $16. Of all the analysts covering Robinhood Markets, eight have positive ratings, six have neutral ratings and three have negative ratings.

In the last month, five analysts have adjusted price targets. Here's a look at recent price target changes [Analyst Ratings]. Benzinga also tracks Wall Street's most accurate analysts. Check out how analysts covering Robinhood Markets have performed in recent history.

Stocks don't move in a straight line. The average stock market return is approximately 10% per year. Robinhood Markets is 86.93% up year-to-date. The average analyst price target suggests the stock could have further upside ahead.

For a broad overview of everything you need to know about Robinhood Markets, visit here. If you want to go above and beyond, there's no better tool to help you do just that than Benzinga Pro. Start your free trial today.

HOOD Price Action: According to Benzinga Pro, Robinhood Markets shares ended Wednesday’s session down 1.24% at $22.32.

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