Rosenblatt initiates Robinhood with a Buy rating and $135 price target, while JPMorgan raises its price target to $115 on the same day.

BlockBeats news, October 22 - Investment bank and institutional broker Rosenblatt Securities analyst Chris Brendler initiated coverage on Robinhood (HOOD) on October 20 with a Buy rating and a $135 price target, implying approximately 37% upside from the previous closing price. On the same day, JPMorgan raised its price target from $103 to $115 but maintained a Neutral rating. Affected by this, Robinhood's stock price rose approximately 4.16% in trading on October 21, closing near $102.29, as the market focused on the divergence between the two institutions on valuation and growth prospects.

In his report, Brendler described Robinhood as a "generational growth story," arguing that it has evolved from its original commission-free trading app into a comprehensive financial platform covering brokerage, retirement accounts, credit cards, futures, index options, and crypto assets, while the market still underestimates the maturity of this transformation. He noted that the company's core brokerage business continues to gain share even at scale, Pattern Day Trading regulatory reform has removed key restrictions on high-value active clients, and accelerating international expansion, deepening product lines, and a relatively fixed operating cost structure all support its valuation premium over traditional brokerage peers.

In contrast, JPMorgan's raise of its price target to $115 reflects some recognition of recent business momentum, but its maintenance of a Neutral rating indicates it remains cautious about valuation levels and long-term sustainability.

Currently, Wall Street's overall consensus rating on Robinhood is "Moderate Buy" or "Buy," with an average price target in the approximately $130-$135 range. Most analysts are bullish on the growth potential brought by its platform expansion and product diversification, but some views also caution about its high volatility and relatively high valuation multiples. This rating update comes ahead of the company's third-quarter earnings report, scheduled to be released on October 27.