Robinhood upgraded to Buy at Needham after Trump’s election win

Needham upgraded Robinhood (HOOD) to Buy from Neutral with a $40 price target Donald Trump’s election win stands to “materially benefit the company,” primarily via changes at the SEC, the analyst contends. The firm believes Robinhood is attractively positioned for more crypto asset listings coming, noting that the company has historically limited its product suite to avoid SEC enforcement actions, but with a change in Chair, it believes Robinhood will launch new offerings including the four new assets last week. The firm also expects a retail driven bull market to be in Robinhood’s favor as the company has been successful in launching “meme” related trading products which appeal to retail customers, the analyst added. The Equity and Margin Business segments should act to dampen crypto revenue volatility and position Robinhood as “a ‘one-stop-shop’ for financial services,” the firm argues.