Robinhood stock price forecast: Bank of America sees upside to $24

By:
on May 17, 2024
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  • Bank of America analyst sees another 22% upside in Robinhood Markets.
  • Craig Siegenthaler explained his bullish view in a research note today.
  • Robinhood stock is already up close to 90% versus its year-to-date low.

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Robinhood Markets Inc (NASDAQ: HOOD) is flying high on Friday after a Bank of America analyst issued a super bullish note in its favour.

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Robinhood stock could gain another 22%

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Craig Siegenthaler doubled upgraded the financial technology company this morning to “buy” and said its shares could climb to $24 which suggests another 22% upside from here.

The analyst is positive on Robinhood stock as he expects retail activity to remain strong moving forward. His research note reads:

Following the emergence of a new bull market last year, we have monitored a rebound in multiple metrics at Robinhood Markets … and we expect this to continue through 2026.

The bullish call arrives only days after $HOOD reported record earnings for its first financial quarter.

Why else is he bullish on $HOOD?

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Craig Siegenthaler is convinced that a continued increase in retail engagement result in up to 44% organic growth at Robinhood Markets Inc.

He’s constructive on the Nasdaq-listed firm as the macroeconomic setup at present is “almost the complete opposite of 2021 which was when we initiated $HOOD at underperform”.

Retail activity related benefit to margin loan utilization and payment for order flow at large may be a material benefit for Robinhood stock moving forward, the Bank of America analyst told clients on Friday.

Note that the financial services company now has 23.9 million funded customers and roughly $130 billion in assets under custody. $HOOD does not, however, pay a dividend at writing.

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