Shares of Robinhood Markets (HOOD) are surging today after 4.3-star Bernstein analyst Gautam Chhugani named the stock brokerage his top pick for 2025 in the digital assets space due to a potentially friendlier regulatory environment under a Trump administration. He expects clearer rules on digital asset classification, which could let Robinhood list more tokens and expand its share of the crypto trading market.
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
Robinhood already saw a 200% stock surge in 2024, but Chhugani sees more room for growth. Indeed, he expects revenue gains to continue and drive profitability in 2025. As a result, the analyst maintained a Buy rating on the stock with a $51 per share price target, which highlights Robinhood’s potential to capitalize on pro-crypto regulation.
Looking ahead, Chhugani believes Robinhood could open new crypto-focused revenue streams, such as staking and stablecoin lending, services typically offered by major crypto exchanges like Coinbase Global (COIN). This could further boost its growth in the next year. It’s worth noting that, so far, Chhugani has enjoyed an 86% success rate on HOOD stock, with an average return of 58.8% per rating.
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 293% rally in its share price over the past year, the average HOOD price target of $48.67 per share implies 13% upside potential.
