Robinhood (HOOD) Stock 'Slides' Despite Wall Street Praise

▲ Robinhood (HOOD)/AI generated image

Robinhood Markets (HOOD)'s target stock price was raised to $145, but the stock price actually showed weakness.

According to Coingape on September 2 (local time), Piper Sandler analyst Patrick Moley raised Robinhood's target stock price from $135 to $145. The investment opinion remained "Overweight." This suggests a potential increase of about 40% based on the closing price of $103.51 on the previous trading day.

The key reason for the target price increase is the prediction market business. Piper Sandler expects the NFL and NCAA seasons to boost Robinhood's event contract trading. The analysis suggests that the demand for prediction market transactions formed during the summer World Cup period could lead into the American football season. The strong revenue flow of Robinhood Chain was also evaluated as a positive factor.

Piper Sandler expects the prediction market trading volume to reach approximately 29.7 billion transactions from September to December. The estimated revenue for this period is about $320 million. On an annualized basis, this amounts to $960 million. The prediction market is expected to rapidly grow into a new revenue source for Robinhood.

Wall Street's optimism was not limited to Piper Sandler. Morgan Stanley recently upgraded Robinhood's investment opinion from "Neutral" to "Overweight." The target stock price was also raised from $124 to $150. However, Robinhood's stock fell 1.24% on the previous trading day and slipped 1.3% in pre-market trading. Over the past month, it has risen by about 20%.

[Article Key Summary]

-Piper Sandler raised Robinhood's target stock price from $135 to $145 and maintained its "Overweight" rating.

-From September to December, prediction market trading volume is expected to be approximately 29.7 billion transactions, with related revenue of about $320 million.

-Morgan Stanley also raised the target price to $150, but Robinhood's stock showed weakness on the previous trading day and in pre-market trading.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*