According to reports, Wall Street analysts are generally optimistic about the future of online brokerage Robinhood because they are optimistic about the company's user growth potential, although the company warned a few days ago that retail trading frenzy on its platform would abate.
Of the six brokerages that participated in Robinhood's initial public offering, three rated the stock as "buy" and two rated it as "hold."JPMorgan Chase & CoIt is the only brokerage to rate the stock as "underweight", arguing that Robinhood is risky in terms of regulation, pricing and the market.
To be fair, while most analysts are bullish on Robinhood, they still question the sustainability of the company's current upsurge in retail trading, even though the company's growth in the second quarter of this year was largely due to huge retail transactions.
However, when it comes to the company's long-term growth prospects, Wall Street analysts are largely optimistic. such as,Goldman Sachs GroupIt is believed that with its innovative stock recommendation program and strong customer development ability, Robinhood's users will continue to grow. Goldman Sachs GroupThe stock has been rated as "neutral".
According to the latest data, Robinhood shares are up 2.25% to $43.64, with a target price of $55.
Some analysts say Robinhood will continue to benefit from its strong brand awareness among young investors, which is built through an effective, incentive-driven customer development model.
Robinhood's trading app has become a gateway for investors to get involved in this year's meme stock boom, but in its debut results last week, the company said it expected retail trading to become less active in the third quarter.
Mizuho analysts said: "We do not think of Robinhood as a phenomenon that comes with meme stock, but as a 'singularity' stock that captures the spiritual traits of Generation Z."