Morgan Stanley upgrades Robinhood, sees 50% upside on second Trump term

A second Trump term could mean more gains ahead for Robinhood , according to Morgan Stanley. Analyst Michael Cyprys upgraded shares to overweight from equal weight and more than doubled his price target to $55 from $24, implying 50.1% upside from Friday’s close. The stock has already rallied in 2024, seeing year-to-date gains of more than 187%. Shares have also gained more than 35% in the past month and more than 73% in the past three. HOOD YTD mountain HOOD, year-to-date Cyprys noted that Robinhood is one of the biggest beneficiaries from President-elect Donald Trump’s White House win in his coverage univers. He said expected deregulation from the incoming administration could allow the financial services platform to participate in crypto more aggressively. With that, as well as a possible recovery in M & A and likely more future IPOs, Cyprys sees a more “robust” retail trading environment heading into next year. The analyst also cited Robinhood’s planned acquisition of TradePMR as providing significant optionality for the platform in the long term. “Revenue growth looks stronger post the election, boosted by more sustained retail trading as support for crypto broadens, M & A opens up, and animal spirits revive,” he told clients in a Monday note. “HOOD is clearly executing on plans to broaden its offerings to capture more wallet share and expand its [total addressable market] – notably in the recently announced acquisition of an RIA custody platform.” Over the next three years, the analyst forecasts a top-line compound annual growth rate of 15%, reaching $4 billion in 2027. The stock rose more than 4% in the premarket following the upgrade. The bullish call puts Cyprys among nine analysts who have a strong buy or buy rating, according to LSEG data. That said, seven other analysts have taken a more neutral stance on the name with a hold rating. The stock’s average target of $30.41 reflects 17% downside from Friday’s close.