Truist Cut Its Robinhood Target Twice This Week. It Still Sees 45% Upside
Truist cut its Robinhood (HOOD) price target to $123 from $125, citing lower revenue estimates for Robinhood Chain, a new business. The firm kept its Buy rating, implying 45% upside from Friday's close. Robinhood's Q3 revenue rose 12% to $1.4B, but crypto revenue fell 55% to $120M. Analysts expect 2027 EPS of $3.39, with the 2027 expense outlook being a key test.
How this was made
The 30-second read
Why it matters
The price target reduction reflects concerns over crypto revenue and slower growth in Robinhood Chain.
Market read
Target cut may trigger short-term sell pressure, but longer-term upside remains tied to 2027 earnings expectations.
What to watch
Potential upside from upcoming 2027 earnings jump and crypto recovery could offset short-term pressure.
Background
Robinhood reported a record Q3 revenue but a sharp drop in crypto revenue; analysts are adjusting expectations.
Ticker impact
Truist cut its price target for Robinhood to $123, down from $125 and $134, indicating a bearish outlook.
likely pressure as investors price in the lower target
Analyst target cuts typically lead to short-term sell pressure, especially after a recent 38% decline.
Market effects
Analyst target cuts may dampen sentiment in the retail brokerage sector.
Minimal regional effect; impact confined to U.S. retail trading stocks.
Limited global relevance.
Counterpoint
Some investors may view the target cut as an entry point given the stock's recent decline.
Key entities
- companyRobinhood Markets
U.S.-listed retail brokerage platform.
- analystTruist
Equity research firm issuing the target cut.
