Robinhood Stock Just Scored a New 'Buy' Rating. Here's What to Know.

Robinhood (HOOD) stock opened higher on Wednesday after StoneX Financial initiated coverage on the financial technology giant with a “Buy” rating. In his research note, analyst Mark Palmer assigned a $170 price target to HOOD, which implies a rather impressive upside potential of about 45% from current levels. 

Note that Robinhood shares have already been a lucrative investment since late March — currently up about 80% versus its year-to-date low. 

Why Is StoneX Bullish on Robinhood Stock?

Palmer’s constructive view on HOOD stock hinges mostly on the company’s transformation from a simple, commission-free equity trading app into a comprehensive financial services hub.

He highlighted Robinhood's aggressive push into higher-margin verticals, including crypto, options, prediction markets, and a proprietary Layer 2 blockchain ecosystem.

By strengthening its footprint in event contracts via recent strategic deals with regulated exchanges, the fintech firm is driving deeper user engagement across its 28.4 million funded accounts.

The product diversification is unlocking recurring revenue streams such as net interest income and premium subscriptions, positioning Robinhood to sustain its strong operational momentum, the analyst added.

Note that Barchart also currently holds an “88% BUY” opinion on HOOD, indicating that technical momentum remains in its favor as well. 

Financial Strength to Drive HOOD Shares Higher

StoneX also cited the underlying financial strength and long-term earnings potential for its bullish view on Robinhood shares. 

In Q2, the fintech firm’s revenue came in up 32% year-over-year, while all other operating metrics accelerated as well — and Palmer expects HOOD’s scale to push its adjusted earnings up to $6.24 a share by 2029. 

The company is “now moving up the stack into market infrastructure it owns outright through Rothera and Robinhood Chain,” he added.

That said, HOOD currently trades at a premium price-to-earnings (P/E) multiple of nearly 59x. 

Wall Street’s View on Robinhood

While not nearly as bullish as StoneX, other Wall Street firms also recommend owning HOOD shares for the remainder of 2026.

The consensus rating on Robinhood sits at “Strong Buy,” with a mean price objective of about $129 indicating potential for a more than 10% rally from here. 

On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.