BofA raised the firm’s price target on Robinhood (HOOD) to $95 from $65 and keeps a Buy rating on the shares. The firm increased earnings estimates through 2027 as well as the stock’s multiple to 40-times from 30-times. The higher earnings estimates, forward growth forecast and multiple are driven by an improved regulatory outlook for digital assets, the analyst tells investors in a research note. BofA says there are separate pieces of stablecoin legislation in each house of Congress, and the passage of a unified bill is likely to occur within weeks. It is now more optimistic on the near-term regulatory outlook, which the firm believes will help broaden investor participation in digital assets and support engagement among existing traders.
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