Mizuho: Robinhood's single-stock perpetual futures will be bullish for the stock price, reiterating an "Outperform" rating and a $140 price target.

BlockBeats news, October 22 - A Mizuho Securities survey of over 600 active Robinhood users shows that if the platform launches single-stock perpetual futures, 94% of respondents said they would be likely or very likely to participate in trading. Another 84% said they would use mainly or entirely new funds for trading, indicating that such products may have limited cannibalization of existing stock trading.

Mizuho Managing Director Dan Dolev said in a Wednesday report that the potential demand is "a strong positive." Mizuho reiterated its "Outperform" rating on Robinhood (HOOD) and a $140 price target, and believes single-stock perpetual futures could launch in the medium term, though the specific timing remains uncertain.

Robinhood previously said on September 29 that it plans to launch perpetual futures trading for U.S. users in the coming months and provide round-the-clock trading for some U.S. stocks. However, company executives recently said there are currently no single-stock perpetual futures plans that can be announced. Coinbase's recent application to launch perpetual futures tied to large U.S. stocks also shows that market interest in such products is heating up.