Truist starts Robinhood at Buy on share gains, higher profitability

Truist analyst David Smith initiated coverage of Robinhood (HOOD) with a Buy rating and $155 price target The company is experiencing “sizable growth” in key metrics and market share gains as its addressable customer universe expands with new products, the analyst tells investors in a research note. The firm sees continued prospects for growth and “attractive” scale economics driving margin expansion for Robinhood. Better profitability creates additional capacity to invest in growth, organically or via acquisitions, adds Truist. It believes Robinhood is on track for its second straight year of 50%-plus revenue growth with 20% achievable for the next few years “even off of this much higher base.”