Robinhood’s (HOOD) sturdy second-quarter earnings Wednesday night have prompted Wall Avenue to lift its expectations for the inventory, however the modest boosts recommend the group believes a lot upside has been priced in.
Shares are buying and selling barely greater Thursday morning at $106.50.
Citi, which lifted its value goal to $120 from $100, continued with a impartial ranking on the inventory. Even after revising his earnings estimate sharply greater, analyst Christopher Allen warns that a lot of Robinhood’s future development is already priced into the inventory, which has practically tripled from its mid-April low and is greater by a whopping 420% year-over-year.
Additionally ranking HOOD impartial, JPMorgan analyst Kenneth Worthington boosted his December 2026 value goal to $104 from $98, citing a “practically excellent working atmosphere with significant volatility, strong retail engagement, and traditionally elevated charges as each its buying and selling and rate-sensitive segments carried out effectively.” The agency’s acquisition of crypto change Bitstamp helped Robinhood submit $160 million in crypto income — about 16% of its complete — fueled by $6.7 billion in notional buying and selling quantity from Bitstamp.
Keefe, Bruyette & Woods — additionally impartial — raised its goal to $106 from $89, emphasizing positive aspects in securities lending and a rebound in crypto buying and selling, notably from Bitstamp. The agency additionally revised its EPS estimates upward for the following three years, citing growing consumer engagement and improved margins.
Cantor Fitzgerald’s Brett Knoblauch — alone amongst this group with a purchase ranking on HOOD — raised his value goal from $100 to $118, suggesting a modest 10% upside from present ranges. His workforce is now valuing Robinhood at 40x 2026 EV/EBITDA and Knoblauch believes the corporate has room for much more development in crypto, choices, and margin curiosity income. He pointed to sturdy momentum throughout new merchandise reminiscent of Robinhood Methods, crypto staking, and the soon-to-launch Robinhood Banking service.
What does this imply for Coinbase’s earnings later as we speak?
Robinhood’s crypto income was bolstered by the addition of Bitstamp’s institutional circulation, nevertheless it additionally benefited from retail merchants returning to the market. If Coinbase stories related exercise — particularly from retail — it may sign a broader resurgence in crypto engagement. Coinbase’s enterprise is extra closely reliant on crypto and institutional exercise, so Robinhood’s sturdy outcomes might foreshadow a beat if those self same developments performed out on Coinbase’s platform.
Nonetheless, Coinbase lacks Robinhood’s diversification into curiosity earnings and securities lending, which insulated Robinhood from volatility in crypto markets final yr. That places extra stress on Coinbase to indicate that crypto buying and selling volumes alone can drive earnings development. Traders will probably be watching carefully.
FactSet tasks COIN will report $1.59 billion in income and $1.25 in earnings per share for the second quarter, each up from the identical interval final yr. Shares are up 1.6% as we speak, buying and selling at $383.56 a chunk.
