Deutsche upgrades Robinhood on ‘exceptionally attractive’ growth potential

Deutsche Bank analyst Brian Bedell upgraded Robinhood to Buy from Hold with a price target of $24, up from $21. Within the brokers, asset managers and exchanges group, near- and long-term upside is best for the e-brokers, the analyst tells investors in a research note. As a part of a mid-Q3 outlook for the sector, the firm upgraded Robinhood to Buy. The company’s growth potential is “exceptionally attractive,” the analyst tells investors in a research note. Deutsche sees strong long-term earnings growth potential for Robinhood, supported by solid growth in transaction revenue and good cost control across a more diversified business base. The firm also sees Robinhood’s future revenue being less dependent on cryptocurrency, assuming good continued core customer growth in usage of equities, options, and general investing, along with related cash and lending products. All in, Deutsche sees an attractive risk/return profile for the stock.