Shares of financial services platform Robinhood Markets (NASDAQ:HOOD) have jumped by nearly 72% over the past three months. The stock has rallied nearly 18% over the past five sessions following a surprise profit for the fourth quarter. While Robinhood expects strong revenue growth in 2024, not all analysts on Wall Street seem to be fully convinced that there is steam left in the rally.
J.P. Morgan’s Ken Worthington reiterated a Sell rating on Hood while raising the price target to $12 from $10. This points to a nearly 14.3% potential downside in the stock. However, Mizuho’s Dan Dolev assigned a Buy rating with a $17 price target. This pegs the potential upside in the stock at 21.4%.
Robinhood’s fourth-quarter performance was marked by robust volume gains, rising interest income, and moderating expenses. The company’s assets under custody soared by 65%. At the same time, its monthly active users declined by about 800,000 in Q4. That could be a troubling sign, considering investor interest in equities and crypto is probably at an all-time high.
Is HOOD a Good Stock to Buy?
Overall, the Street has a Hold consensus rating on Robinhood, and the average HOOD price target of $13.58 implies a potential downside of 3% in the stock.
Importantly, the company’s share price is now hovering at levels last seen in March 2022. Any slump in the broader markets or cryptocurrencies this year (an election year) could translate into lower trading activity and muted performance in HOOD stock.
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