Citi opened a “90-day negative catalyst watch” on Robinhood ahead of the formal release of the SEC market structure rules in early 2024. Although cash equities only accounts for 6% of the company’s revenue, Citi sees the SEC market structure rules as a potential headline risk for Robinhood given its payment for order flow focused model in securities, the analyst tells investors in a research note. The firm views the proposals as a near-term risk to the stock. It keeps a Neutral rating on the shares with a $12.50 price target.
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