Robinhood Markets Is A 'Category Killer': Analysts' Positive Take On Q1 Earnings

Shares of Robinhood Markets Inc HOOD were climbing on Thursday after the company reported better-than-expected quarterly revenues. The report came amid an exciting earnings season.

Here are some key analyst takeaways from the earnings release.

Mizuho Securities On Robinhood Markets

Analyst Dan Dolev reiterated a Buy rating and price target of $14.

“Our thesis on HOOD is that it is a true 'category killer' in the retail trading space,” Dolev said in a note. The company’s first-quarter results “continued to verify our bullish stance,” he added.

Robinhood Markets’ monthly active users (MAUs) “inflected positively” for the first time in seven quarters, while its average revenue per user (ARPU) jumped sequentially, “helped by higher interest revenue, and also due to strong execution on options, which were up ~7% Q/Q,” the analyst stated.

Check out other analyst stock ratings.

JMP Securities On Robinhood Markets

Analyst Devin Ryan maintained a Market Outperform rating and a price target of $25.

Robinhood Markets reported “solid” first-quarter results, with 48% year-over-year revenue growth and its “march toward GAAP profitability continues,” Ryan wrote in a note.

Even with 48% growth, the company’s revenue remains “at just 80% of the 2Q21 revenue peak,” the analyst said. “However, in our view, retail investor activity is currently well below baseline, and we believe the company will inevitably benefit as macro uncertainty lessens and investor confidence/risk appetite grows,” he added.

HOOD Price Action: Shares of Robinhood Markets were up by 5.24% to $9.54 at the time of publication on Thursday.

Now Read: Cathie Wood Makes Whopping $43M Palantir Buy Day After Stock's Massive Surge