4 Reasons BTIG Is Buying Robinhood Stock Right Now

Online trading platform Robinhood Markets (HOOD) is seeing a surge in its user base. In its May metrics, the company reported 27.7 million funded customers, which reflected an increase of approximately 1.76 million year-over-year (YOY). At the end of the month, Robinhood had $377 billion in total platform assets, up 48% YOY. 

What has been notable is the company’s 75% YOY growth in equity notional trading volumes and a 29% growth in options contracts traded. However, crypto notional trading volumes grew only modestly by 4% YOY. The company also announced a 10% reduction in its workforce to flatten management layers. 

Robinhood’s growth has turned analysts in its favor. Recently, BTIG analysts initiated coverage of the stock with a bullish “Buy” rating. The firm also forecasted the platform's assets to grow 20% annually over the next decade. Analyst Andrew Harte identified four reasons to be bullish on the online trading platform. 

First, the company commands a large Gen Z customer base that is entering its peak earning years. Second, Robinhood is experiencing increasing customer engagement. Third, its new customer additions have been robust. Finally, the company is seeking product and geographical expansion. 

About Robinhood Markets Stock

Robinhood Markets is a financial services company that runs a mobile-first platform for retail investing. It lets users trade stocks, ETFs, options, and crypto, and also offers cash management and debit card services. Robinhood Markets is headquartered in Menlo Park, California and has a market capitalization of $88.87 billion. 

Showing some improvement in operating momentum. Recent strength appears tied to higher trading activity, improved investor sentiment regarding its growth prospects, and continued expansion of its products and customer engagement. Over the past 52 weeks, the stock has gained 22.64%, while it is down 9.96% year-to-date (YTD). The stock had reached a 52-week low of $63.51 on March 30, but is up 60.3% from that level. Over the past month, the stock has been up by a robust 8%. 

Robinhood is trading at a significantly higher valuation than its peers. On a forward-adjusted basis, its price-to-earnings (non-GAAP) ratio of 44.45 times is higher than the industry average of 11.33 times. 

Robinhood Markets Q1 Results Showed Strong Growth Momentum

For the first quarter, Robinhood exhibited strong growth momentum, with total revenue up 15% YOY to $1.07 billion. This was based on a 24% growth in net interest revenues, while transaction-based revenues grew by a modest 7%. As the platform’s engagement remained high, it recorded a 20% annualized net deposit growth rate. Despite an 18% YOY growth rate in operating expenses, Robinhood grew its EPS from $0.37 to $0.38. 

Wall Street analysts are tepid about Robinhood’s future earnings. They expect the company’s EPS to drop by 2.4% YOY to $0.41 for the current quarter. For fiscal 2026, EPS is projected to decline 11.7% to $1.81, followed by a 35.4% growth to $2.45 in fiscal 2027.

What Do Analysts Think About Robinhood Markets’ Stock?

In addition to BTIG analysts' initiation, other Wall Street analysts have reiterated their bullish stance on Robinhood’s stock. Analysts at Argus raised the price target from $90 to $110, while maintaining a “Buy” rating. Argus analysts highlighted that the shares are up, helped by heightened market volatility tied to the conflict in Iran and signs that bitcoin prices may have found a floor.

Needham analysts also raised the price target from $85 to $97, while keeping a “Buy” rating on Robinhood’s stock. Following the company’s May metrics release, which showed significant acceleration in equities and event contracts despite declining crypto volumes, Needham increased its estimates. Additionally, the firm’s analysts view Robinhood as the most advanced financial services platform in its pursuit of becoming a financial super app. 

Cantor Fitzgerald analysts raised their price target on the stock to $130 from $110, while maintaining an “Overweight” rating, citing growth potential from Rothera, the World Cup, fewer trading restrictions, and a stronger IPO pipeline. A healthier issuance environment may also lift retail engagement, trading activity, and customer acquisition.

Robinhood is a sound favorite on Wall Street, with analysts awarding it a consensus “Moderate Buy” rating. Of the 25 analysts rating the stock, a majority of 17 analysts have rated it a “Strong Buy,” two analysts suggest a “Moderate Buy,” while five analysts are playing it safe with a “Hold” rating, and one analyst rated it “Strong Sell.” The consensus price target of $105.08 represents a 3.2% upside from current levels. The Street-high price target of $155 indicates a 52.2% upside.