It was no fairytale for Robinhood (HOOD) on Tuesday as the stock was left in the red after Wolfe Research downgraded it and removed its $51 price target. Five-star analyst Steven Chubak downgraded HOOD to Peer Perform from Outperform, essentially cutting the stock from Buy to Hold, sending shares down over 4%.
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After upgrading the shares in June, Chubak said the key drivers underpinning the firm’s bull case have “largely played out” and were now reflected in the current valuation and share price, which recently hit an all-time high $66.08
He notes that with the earnings per share consensus having been revised up by more than 160% since June, and by more than 600% over the last twelve months, the EPS “bull case” has now become the base case.
The stock rallied 14% higher following the company’s Q4 results, which showed the company surpassed the $1 billion revenue mark for the first time, driven by a 500% increase in crypto trading fees, which hit an all-time high of $358 million.
Robinhood Bulls Prefer The Pied Piper Sandler
Offering a more upbeat assessment, Piper Sandler five-star analyst Patrick Moley reaffirmed his Overweight (Buy) rating on Robinhood with a steady price target of $75.00, implying a further 20% from the current levels.
Meanwhile KBW analyst Kyle Voigt raised the firm’s price target on HOOD stock to $60 from $38 and maintained a Market Perform (Hold) rating on the shares. He argued that the operating backdrop for Robinhood remains robust, boosted by a strong slate of new products.
Last week analysts sounded bullish on the stock in the wake of the earnings update. Morgan Stanley’s Michael Cyprys raised his price target to $90, while Bernstein’s Gautum Chhugani went to a Street high $105 from $51 before.
Is HOOD a Good Stock to Buy?
Overall, Wall Street has a Moderate Buy rating on HOOD stock, based on 12 Buys, five Holds and no Sells. The average HOOD price target of $71.71 implies about 14% upside.
