Robinhood Markets stock may seem expensive compared to its peers, but it is likely to deliver strong returns as the trading platform transforms into a one-stop shop for a younger customer base, according to BTIG. The investment firm began reporting on Robinhood with a buy rating. He also has a $125 price target on the stock, implying a 34% upside from Thursday’s closing price. “While we acknowledge that HOOD’s trading multiple is at a significant premium to its peers, we believe it is justified given its low penetration (of the total addressable market), its customer base still in the early stages of wealth accumulation, and its vast product suite,” analyst Andrew Hart said in a note to clients on Friday. He pointed out that Robinhood’s forward P/E ratio is 46 times, while the average multiple for its peers is about 15 times. HOOD 1Y Mountain stock is up nearly 11% over the past 12 months. The trading platform’s stock has risen nearly 11% over the past year as Robinhood moves to expand its services to customers. The company has partnered with various prediction markets to launch several event contracts available on its platform. The company rolled out more than 200 tokenized US stocks to customers in the European Union last year. More broadly, Robinhood’s corporate strategy could sustain 20% growth in platform assets “for years to come,” BTIG added. BTIG’s call is consistent with Wall Street consensus. Of the 26 analysts covering Robinhood, 21 rate the stock as a buy or strong buy, according to LSEG data.
