Robinhood Markets stock may look expensive compared to its peers, but it’s likely to deliver strong returns as the trading platform refashions itself into a one-stop-shop for its young client base, according to BTIG. The investment firm initiated coverage of Robinhood with a buy rating. It also put a $125 price target on shares, implying 34% upside from Thursday’s close. “We acknowledge HOOD’s trading multiple is a significant premium to peers, but we view it as warranted given the combination of low [total addressable market] penetration, a customer base still in the early stages of its wealth accumulation journey, and a vast product suite,” analyst Andrew Harte said Friday in a note to clients. He pointed out that Robinhood trades at 46 times forward earnings — while industry peers sport an average multiple of around 15. HOOD 1Y mountain Shares are up nearly 11% over the past 12 months. Shares of the trading platform have jumped nearly 11% over the past year as Robinhood has made moves to expand its offerings to clients. The company has launched several event contracts available on its platform in partnership with various prediction markets. Last year, the firm also rolled out more than 200 tokenized U.S. stocks to customers in the European Union. More broadly, Robinhood’s corporate strategy could enable it to sustain 20% platform asset growth “for years to come,” BTIG added. BTIG’s call falls in line with consensus on Wall Street. Of the 26 analysts covering Robinhood, 21 have a buy or strong buy on the stock, LSEG data shows.
Robinhood is expensive relative to peers. BTIG says the premium is ‘warranted’
