Robinhood’s Strong Q2 Fails to Sway Cautious Wall Street Analysts
Robinhood’s robust second-quarter earnings have spurred Wall Street analysts to raise their price targets, though the increases are modest, suggesting much of the potential upside is already factored into the stock price. Shares are trading slightly higher, around $106.50.
Citi, maintaining a neutral rating, increased its price target to $120 from $100. Analyst Christopher Allen, while significantly raising his earnings estimate, cautions that much of Robinhood’s future growth is already priced in, considering the stock’s near tripling from its April low and a 420% year-over-year increase.
JPMorgan, also with a neutral rating, boosted its December 2026 price target to $104 from $98, citing favorable market conditions and strong performance across trading and rate-sensitive segments. The acquisition of Bitstamp contributed significantly, generating $160 million in crypto revenue (16% of the total), driven by $6.7 billion in notional trading volume.
Keefe, Bruyette & Woods, maintaining a neutral stance, raised its target to $106 from $89, highlighting gains in securities lending and a rebound in crypto trading, particularly from Bitstamp. They also revised their EPS estimates upward for the next three years.
Cantor Fitzgerald stands alone with a buy rating, raising its price target from $100 to $118, implying a modest 10% upside. They value Robinhood at 40x 2026 EV/EBITDA, anticipating further growth in crypto, options, and margin interest revenue, citing momentum in new products like Robinhood Strategies, crypto staking, and the upcoming Robinhood Banking service.
Robinhood’s strong crypto performance, fueled by Bitstamp’s institutional flow and increased retail trader activity, raises expectations for Coinbase’s earnings. Similar retail engagement in Coinbase’s report could signal a broader crypto resurgence. However, Coinbase’s heavier reliance on crypto and institutional activity, coupled with its lack of diversification into interest income and securities lending, puts pressure on it to demonstrate that crypto trading volumes alone can drive earnings growth. FactSet projects Coinbase’s second-quarter revenue at $1.59 billion and earnings per share at $1.25, both increases year-over-year. Shares are currently trading at $383.56, up 1.6%.
