Robinhood’s Blowout Q2 Lifts Price Targets but Fails to Sway Cautious Analysts
Robinhood (HOOD) delivered a robust second-quarter performance, sending its stock slightly higher to $106.50 on Thursday morning. However, despite earnings that impressed across the board, Wall Street analysts largely held their ground, raising price targets but refraining from issuing any ratings upgrades.
The hesitation comes as the stock has already surged nearly 200% since April and sits 420% above year-ago levels — prompting concerns that the recent rally has priced in much of the company’s forward momentum.
Analysts Acknowledge Strong Quarter, Stay Neutral
Citi hiked its target from $100 to $120 but maintained a neutral stance, with analyst Christopher Allen cautioning that Robinhood’s valuation already reflects much of its anticipated growth. JPMorgan’s Kenneth Worthington similarly boosted his 2026 target to $104 from $98, citing an “ideal” macro backdrop that benefited both trading and rate-sensitive revenue. Worthington highlighted strong contributions from Robinhood’s crypto arm, especially following the Bitstamp acquisition, which generated $160 million in crypto revenue from $6.7 billion in notional trading volume.
Keefe, Bruyette & Woods raised its target from $89 to $106 while holding a neutral rating. Analysts there pointed to a rebound in crypto trading, increasing user activity, and stronger-than-expected gains in securities lending. EPS forecasts for the next three years were also revised upward to reflect improving operational efficiency.
Cantor Fitzgerald Stands Out with Bullish Outlook
Cantor Fitzgerald’s Brett Knoblauch was the only analyst in the group to retain a buy rating, lifting his target from $100 to $118. He believes Robinhood could see further upside as it scales crypto services, options, and margin lending. Knoblauch is also optimistic about new initiatives, including Robinhood Strategies, staking services, and the upcoming launch of Robinhood Banking.
He now values the company at 40 times 2026 EV/EBITDA — a premium he argues is justified by the platform’s growing relevance in both retail investing and crypto finance.
What Robinhood’s Results Could Mean for Coinbase
Robinhood’s crypto strength was driven by Bitstamp’s institutional volume and a resurgence in retail interest. If Coinbase (COIN) sees a similar uptick in user activity and transaction volumes, it could point to a broader crypto market recovery.
However, unlike Robinhood, Coinbase lacks significant revenue diversification through interest income or securities lending — factors that insulated HOOD during last year’s market volatility. This leaves Coinbase more reliant on pure trading activity to drive earnings.
According to FactSet, Coinbase is projected to report $1.59 billion in Q2 revenue and $1.25 in EPS. COIN shares traded up 1.6% Thursday at $383.56 ahead of its earnings release. Investors will be closely watching to see if Coinbase can match Robinhood’s momentum — or if its narrow revenue base proves limiting.
