Morgan Stanley Upgrades Robinhood, Citing User Monetization Potential

By EC Assets · Published

Morgan Stanley has upgraded Robinhood Markets. The investment bank anticipates a 43% upside for the brokerage platform's shares. This upgrade follows a re-evaluation of Robinhood's growth prospects. Morgan Stanley changed its rating on Robinhood Markets to Overweight from Equal-weight. It also increased its price target for the stock to $150 from $124. Robinhood's shares rose 2.4% in premarket trading following the news. Analysts at Morgan Stanley noted that Robinhood could achieve considerable upside by increasing its efforts to monetize its existing user base. The firm believes this growth is possible even without help from cryptocurrency services. Robinhood offers commission-free trading for equities, cryptocurrencies, and tokenized stocks. This offering has made it popular with young retail traders. Other financial institutions have also adjusted their outlooks for Robinhood. Barclays, alongside Morgan Stanley, boosted Robinhood's price target by up to 50%. The online trading platform provider's stock pushed near entry after the upgrade. Investors will continue to monitor Robinhood's strategies for user monetization and overall growth. This article is intended for informational purposes only. It does not constitute investment advice.

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