HOOD Maintained by B of A Securities -- Price Target Raised to $

Robinhood (HOOD) rose 9% after the SEC approved a temporary framework for tokenized U.S.-listed securities, but the framework excludes Robinhood's existing synthetic stock tokens. The stock trades at a premium with a forward P/E of 45.46x, above its historical average and sector median. The SEC's order allows listed companies to object to tokenization, opposing Robinhood's CEO's stance. Institutional interest in HOOD is growing, with hedge fund holdings increasing.

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.

BofA raised its price target for Robinhood (HOOD) to $156 from $140, citing strong trading activity and higher net interest income forecasts. The firm increased its EPS estimates for 2026-2028. HOOD's P/E ratio is nearly 50. Other analysts also updated ratings and targets, noting new product launches and increased trading volumes.