5 Robinhood Analysts React To 'Blowout' Q4 Earnings: Can The 'Tremendous Momentum' Continue?

Robinhood Markets Inc HOOD analysts on Thursday raised price targets on Robinhood shares following the company’s fourth-quarter results. Analysts are overwhelmingly impressed with profitability metrics combined with accelerating growth.

Q4 Results: Robinhood reported a strong fourth quarter, with revenue of $1.01 billion coming in ahead of estimates of $944.62 million, and earnings of $1.01 per share beating estimates of 42 cents per share, according to Benzinga Pro.

Total revenue was up 115% year-over-year, driven by strong transaction-based revenue growth across equities, options and cryptocurrency. Robinhood said net deposits hit a record of $16.1 billion in the quarter as accounts grew 10%.

KeyBanc Maintains Overweight: Keybanc analyst Steve Barger maintained an Overweight rating and raised the price target from $57 to $75, citing improving profitability and momentum with key product initiatives.

The Keybanc analyst believes Robinhood is poised to continue its leadership in the financial application space and grow average revenue per user on the back of strong engagement, rapid uptake of new products, continued innovation and a maturing culture focused on responsible, profitable growth.

“As a well-known and culturally relevant brand, Robinhood is well positioned to make further in-roads within the targeted segment across various financial products,” Barger said.

JMP Securities Maintains Market Outperform: JMP Securities analyst Devin Ryan maintained a Market Outperform and raised the price target from $60 to $77, calling it a “blowout quarter” for Robinhood.

“Robinhood is currently operating with tremendous momentum, and we see elevated growth persisting across virtually all aspects of its business, not to mention it is entering a number of new markets over the next year that are promising, and we envision incremental areas for innovation still to come beyond those,” the JPM Securities analyst said.

While Robinhood is seeing an acceleration in revenue, the company also remains focused on profitability, which Ryan expects to help support further margin expansion. The analyst noted that there are several growth drivers on the product roadmap that are not yet being accounted for in Street estimates.

Needham Maintains Buy: Needham analyst John Todaro maintained a Buy rating and raised the price target from $52 to $70 after the company posted a “strong beat and solid outlook.”

Todaro echoed the sentiment of JMP’s Ryan, noting that Robinhood was able to maintain expense discipline and reach 60% EBITDA margins while reporting strong growth across all three transaction segments.

“Robinhood is positioned to be a major beneficiary of more positive regulation within the crypto space, while emerging as a leader in its equity & options offering via advanced trading product launches,” Todaro said.

“We expect HOOD to launch a number of new crypto related products, in particular those that appeal to a retail customer base, in 2025, which should allow the company to take share from centralized and decentralized peers.”

Check This Out: Robinhood’s Crypto Bet Pays Off: Bernstein Predicts Massive Growth, $105 Price Target

Goldman Sachs Maintains Buy: Goldman Sachs analyst James Yaro maintained a Buy rating and raised the price target from $54 to $62, calling it a “well-rounded quarter” for Robinhood.

Goldman appears to be less optimistic than the aforementioned analysts, albeit not by much. The analyst expects Robinhood to continue rolling out new products that will help the company capture market share and expand globally.

Given the stronger trends in the fourth quarter, Yaro raised the net revenue estimates for full-year 2025 by 11%. The analyst also bumped full-year adjusted earnings estimates by 15%.

JPMorgan Maintains Neutral: JPMorgan analyst Kenneth Worthington is the least bullish of the bunch. The analyst maintained a Neutral rating and raised the price target from $39 to $45, suggesting downside from current levels.

“Robinhood's platform is clearly maturing and evidencing its profitability, but we remain cautious on unproven business lines and valuation,” Worthington said.

Robinhood shares are up 67% year-to-date and the stock has climbed more than 360% over the past year. The JPMorgan analyst acknowledged the significant progress at Robinhood, but remains cautious on new products and the scale of the company versus larger competitors. Worthington is also skeptical on the profitability potential of Robinhood’s smaller accounts.

“While we acknowledge the significant growth Robinhood has delivered the past 3-4yr, we remain Neutral given the competitive environment and varied outlook,” Worthington said.

JPMorgan’s $45 price target for December is based on a 32-times earnings multiple and $2 billion in excess cash.

HOOD Price Action: Robinhood shares were up 13% at $63.14 at the time of writing Thursday, according to Benzinga Pro.

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