Robinhood Markets (HOOD) saw its shares jump on Friday morning after Morgan Stanley Research named the retail trading platform as its top pick due to multiple growth opportunities not yet reflected in its valuation. Analysts pointed out the potential for Robinhood to expand in areas like cryptocurrency and capitalize on untapped growth areas within its user base.
Stay Ahead of the Market:
- Discover outperforming stocks and invest smarter with Top Smart Score Stocks
- Filter, analyze, and streamline your search for investment opportunities using Tipranks' Stock Screener
Michael Cyprys, a 4.5-star analyst at Morgan Stanley, emphasized Robinhood’s ability to strengthen its presence in the crypto space, particularly under the anticipated deregulatory policies of the incoming Trump administration. In addition, he noted that sustained retail engagement and increasing capital markets activity could lead to upward adjustments in revenue estimates for the company. As a result, Cyprys has a Buy rating on HOOD stock with a $55 per share price target.
Earlier this week, Bernstein analyst Gautam Chhugani also picked Robinhood as his best investment idea for 2025 within the digital assets sector. He attributed this to the possibility of a more favorable regulatory environment for the company’s currently constrained crypto operations under the new administration.
Is HOOD a Good Stock to Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on HOOD stock based on 12 Buys, four Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. After a 350% rally in its share price over the past year, the average HOOD price target of $48.67 per share implies 2.2% upside potential.
