Robinhood upgraded to Neutral from Sell at Citi

Citi upgraded Robinhood to Neutral from Sell with an $18 price target. The shares finished down 12% on Friday given the potential impact from lower interest rates, the analyst tells investors in a research note. The firm believes Robinhood’s fundamental story has been improving with “healthy growth” in deposits, margin balances, and options/equities trading. After the pullback in the stock, the company’s current valuations offer a more balanced risk/reward, contends Citi. It expects Robinhood’s Q2 report on August 7 to bring positive updates on its growth initiatives, namely UK expansion and Gold card, as well as an overall positive update of the fundamental outlook.