Robinhood is likely to shoot higher if the trading platform can fashion itself into the first true hyperscaler among online brokerages, according to Mizuho. The bank has an outperform rating on Robinhood. It raised its price target on shares to $130 from $115, implying 20% upside from Wednesday’s close. “Unlike cloud computing, social media, or internet search, the online brokerage space is still highly fragmented and geographically dispersed,” analyst Dan Dolev said in a note. “HOOD has a chance to become the first true global ‘hyperscaler’ of online brokerages.” HOOD 3M mountain HOOD 3-month chart The online brokerage industry remains highly fragmented, with major U.S. players struggling to gain ground in Europe or Asia, according to the analyst. But Robinhood, with its more than 27 million funded accounts, could become a globally recognized brokerage due to its best-in-class interface, popularity with Gen-Z and ambitions to make its business ten-times bigger, per Mizuho. “Every market has its own incumbent. None of them has meaningfully crossed borders,” Dolev wrote. “A company with a technology-native, mobile-first, zero-friction platform…that can be deployed across jurisdictions with local regulatory licenses has an enormous opportunity to consolidate.” Mizuho’s call falls in line with consensus on Wall Street. Of the 27 analysts covering Robinhood, 22 have a buy or strong buy on the stock, LSEG data shows. Shares have risen 58% over the past three months.
Robinhood will soar as it moves closer to becoming the first hyperscaler brokerage, says Mizuho
