Cantor Fitzgerald has started covering Robinhood (HOOD) with an Overweight rating, setting a price target of $69. The firm believes Robinhood’s ongoing platform expansion will drive strong future growth and lead to positive surprises in revenue and profitability.
Why Cantor Fitzgerald Is Bullish on Robinhood
Analyst Brett Knoblauch highlights Robinhood’s significant growth and transformation over the past year. Once known primarily for stock trading, the company has expanded into multiple areas, positioning itself for long-term success. In 2024, Robinhood:
Reached $193 billion in assets under custody (AUC)
Added 1.8 million new funded accounts
Grew revenue by 58.2%
Generated $1.4 billion in adjusted EBITDA
Continued launching new products and features
Cantor Fitzgerald believes these factors indicate a strong and sustainable growth trajectory for the company.
Crypto Expansion: A Key Growth Driver
One of the biggest opportunities for Robinhood, according to the report, lies in its cryptocurrency business. With favorable regulatory developments, the firm expects Robinhood to:
1. Expand its list of tradable cryptocurrencies
2. Capture institutional market share through its Bitstamp acquisition
3. Enter the staking market, opening up new revenue streams
Market Underestimates Robinhood’s Potential
The report suggests that Robinhood is gaining market share in both stocks and crypto trading. Despite its strong year-to-date performance, Cantor Fitzgerald believes the market is undervaluing its potential. The company’s expanding product offerings could lead to higher asset growth, increased fees, and stronger profitability in the coming years.
With these factors in mind, the firm sees an attractive risk/reward opportunity for investors at current stock price levels.
