Mizuho Reiterates Outperform Rating on Robinhood Markets (HOOD)

Mizuho analyst Dan Dolev reiterated an Outperform rating and $35.00 price target on Robinhood Markets (NASDAQ: HOOD).

The analyst comments "This morning, HOOD announced the $300mn acquisition of TradePMR, HOOD's biggest acquisition to date. We view this as a good strategic deal for three reasons: (1) TradePMR, with its 350 firms, 1,000+ RIAs and $40bn in assets under administration (AUA), helps HOOD tap the fast growing, $7tn RIA channel TAM, of which roughly 75% is owned by incumbents like Schwab. (2) The acquisition helps expand reach beyond HOOD's active trader base by adding more advisory capabilities for the less active users. (3) Acquiring TradePMR helps it accelerate penetration of HOOD's ~75% Millennial and Gen Z customer base. We estimate potential revenue using a ~15bps take rate on the $40bn AUA, implying roughly $60mn or 2-3% contribution annual growth upon closing."

For an analyst ratings summary and ratings history on Robinhood Markets click here. For more ratings news on Robinhood Markets click here.

Shares of Robinhood Markets closed at $35.00 yesterday.

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