BofA raises Robinhood stock price target on trading strength

B of A Securities maintained a 'Buy' rating on Robinhood (HOOD) and raised its price target to $156.00 from $140.00. The company's GF Value™ suggests it is 43.1% overvalued, while insider activity shows significant selling. Robinhood's GF Score™ is 75/100, indicating fair performance with strengths in growth and momentum but weaknesses in financial strength and valuation.

The CFTC proposed rules to regulate crypto leverage trading, creating a new registration category for exchanges. Chairman Michael Selig emphasized consumer protections. The 60-day comment period begins Monday. The proposal follows legislative setbacks and aims to integrate crypto into the agency's regulatory framework. Exchanges like Coinbase, Crypto.com, and Robinhood offer such trading.

The CFTC proposed a regulatory framework for leveraged crypto trades targeting retail investors, opening a 60-day comment period. The plan includes a new 'crypto asset market' subcategory for platforms. CFTC Chairman Michael Selig emphasized consumer protection and clarity. The move follows congressional inaction on the Clarity Act. Major platforms like Coinbase (COIN) and Crypto.com could be affected, with Robinhood (HOOD) planning to offer crypto perpetual futures.

BofA raised Robinhood's (HOOD) price target to $156 and Coinbase's (COIN) to $203, maintaining 'Buy' ratings. Robinhood's stock rose 1% after the announcement, despite a 20% drop over the past year. The company expects Q3 earnings of $0.64 per share on $1.4B revenue, with strong equities revenue growth and new product launches planned. Coinbase's stock was also positively impacted by the target increase. Both companies have shown bullish market performance and investor interest.

Bank of America raised price targets for Robinhood (HOOD) to $156 and Coinbase (COIN) to $203, both with 'Buy' ratings, while cutting eToro's (ETOR) target to $39 with a 'Neutral' rating. HOOD and COIN shares rose, while ETOR fell. HOOD is expected to report Q3 earnings of $0.64 per share on $1.4B revenue, with a long beat streak. COIN is expected to report a Q3 loss of $0.20 per share on $1.77B revenue, with recent misses.

Robinhood (HOOD) plans to allow trading of select U.S. stocks and ETFs 24/7, including weekends, pending regulatory approval. The move, expected early next year, could extend trading hours by 40%. Robinhood's equities revenue grew 94% YoY to $129M in Q2, but equities represent only 10% of total revenue. The impact on revenue is uncertain, with estimates suggesting a modest increase of 1-4%.