Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Robinhood 'insulated from SEC crypto debacle,' future prospects are upbeat - Mizuho Securities

Published 08/06/2023, 13:06
Updated 08/06/2023, 13:06
© Reuters

© Reuters

Mizuho Securities analysts, following a recent meeting with Robinhood's (NASDAQ:HOOD) management, reiterate a Buy rating and $14 price target on the online brokerage company in light of the SEC's recent crypto crackdowns on Coinbase (NASDAQ:COIN) and Binance.

After talking to Vlad Tenev, HOOD's CEO & co-Founder, during a recent NYC group meet, the analysts believe "HOOD should be largely insulated to the recent SEC crypto debacle since only ~2% of crypto assets under custody (AUC) - or <1% of total AUC - include potentially controversial tokens like Polygon, Solana, or Cardano."

In the meeting, the management also reiterated its intent "to pursue opportunistic M&A and buybacks and expand internationally," and plans to "launch in the UK by the end of the year."

Furthermore, the management highlighted its longer-term plan "to develop AI advisory that democratizes wealth-management by bringing high-end financial services to main street," outlining a new potential growth direction.

Overall, Mizuho analysts remain "upbeat about HOOD's future prospects," as they reiterate a Buy rating and a $14 price target.

Shares of HOOD closed at $9.39 yesterday, and are up over 16% YTD.

 

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.