Robinhood Markets Inc (NASDAQ:HOOD) shares are climbing Tuesday. Needham raised its price target on the stock ahead of second-quarter earnings. Here’s what you need to know.
- Robinhood Markets stock is showing exceptional strength. Why is HOOD stock surging?
Needham Sees Stronger Revenue Momentum as Platform Activity Surges
Needham analyst John Todaro kept his Buy rating and pushed his price target to $123 from $97, anchored to a 28x multiple on his discounted 2027 adjusted EBITDA estimate. The upgrade reflects what Todaro describes as a platform where almost everything outside of crypto is running near peak activity levels.
The firm bumped its second-quarter revenue estimate to $1.33 billion from $1.27 billion, driven largely by stronger transaction revenues of $814 million versus a prior forecast of $727 million. Full-year 2026 revenue estimates moved to $5.21 billion from $5.07 billion while adjusted EBITDA climbed to $2.66 billion from $2.49 billion.
For 2027, Needham now sees $6.49 billion in revenue and $3.71 billion in adjusted EBITDA, both meaningfully above prior estimates.
Todaro flagged the removal of the Pattern Day Trading rule as an incremental tailwind, noting that the average Robinhood account balance sits around $13,000, well under the previous $25,000 threshold, which should allow more of its user base to trade more actively going forward.
Crypto is the One Soft Spot
While equities, options and event contracts are all accelerating, the crypto picture is more nuanced. June trading volumes were stronger than Todaro initially expected, but he noted that those gains lost momentum in July as centralized exchange volumes continued declining industry-wide.
The one bright spot on the crypto side is Robinhood Chain, the company’s recently launched blockchain network, which has drawn notable early activity. Todaro flagged that much of the activity is tied to a Yield product and decentralized exchange connections, making its durability harder to assess in the current environment. He sees retail capital remaining focused on equities and AI-driven commodities rather than rotating back into crypto until enthusiasm around AI cools.
Robinhood Advancing its Super App Strategy Under Supportive Regulation
Todaro continues to frame Robinhood as the financial services platform furthest along in building what the firm calls a “financial super app,” with prediction markets and tokenized assets expected to become a growing part of the business over time.
The firm sees the current regulatory environment as a structural positive for the company’s longer-term positioning across crypto exchanges and prediction markets.
HOOD Shares Are Soaring
HOOD Price Action: Robinhood shares were up 8.61% at $107.83 at the time of publication on Tuesday, according to Benzinga Pro.
Image: Shutterstock
