Robinhood stock drops after Mizuho analyst slashes price target by more than 60%, but stays bullish
Shares of Robinhood Markets Inc. (HOOD) dropped 4.0% in premarket trading Tuesday, after Mizuho analyst Dan Dolev slashed his price target by more than 60%, but remained bullish over the "medium term." Dolev acknowledged that, amid the broad weakness in the payments sector, the commission-free trading platform's stock appeared to be "particularly out of favor," as the company will face its most difficult year-over-year financial comparisons in the coming quarters and given the overhang from possible regulatory scrutiny over payment for order flow (PFOF). As those issues get resolved, Dover said the stock could see a "nice rebound." He cut his stock price target to $20 from $55 but reiterated his buy rating. On Monday, the stock had tumbled as much as 14.1% to a record intraday low of $11.15, which was 71% below its initial public offering price of $38, before rebounding to close up 1.1%. That snapped a seven-day losing streak in which the stock tumbled 20.9%. "In the medium-term, we continue to believe that [Robinhood] has captured a major generational zeitgeist by bringing younger generations onto its platform and into the investing world," Dover wrote in a note to clients. The stock has plunged 66.4% over the past three months through Monday, while the S&P 500 has slipped 3.4%.
(END) Dow Jones Newswires
January 25, 2022 08:41 ET (13:41 GMT)
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