Robinhood price target raised to $42 from $36 at Deutsche Bank

Deutsche Bank raised the firm’s price target on Robinhood (HOOD) to $42 from $36 and keeps a Buy rating on the shares following the investor day. The company presented a 10-year outlook for the business, focusing on its ambitions for leadership in active trading, increasing wallet share penetration for the next generation, and positioning Robinhood to be a major part of the global financial ecosystem, the analyst tells investors in a research note. The firm says management provided more visibility into the acceleration of its product road-map, with expectations for a more comprehensive launch of event contracts next year and the ramping up of futures, index options and its advanced desktop trading platform, as well as more extensive offerings in crypto, wealth advisory and patient growth in credit card. Deutsche came away from the investor day “increasingly optimistic” on Robinhood’s long-term revenue and earnings growth profile.