Robinhood has been building a broader business beyond retail trading. Now a key regulatory shift is giving analysts another reason to upgrade their outlook.
Mizuho raised its price target on Robinhood (HOOD) to $115 from $105 on Sunday, keeping its Outperform rating in place. The stock was trading around $90.75 at the time, giving it a market cap of roughly $81.7 billion.
The move follows the SEC’s decision to scrap the $25,000 minimum balance requirement tied to the Pattern Day Trader rule. Brokers can now set their own intraday margin requirements instead.
To size up the impact, Mizuho ran a survey of around 160 traders with accounts under $25,000. More than 80% said the old rule had been limiting their activity.
Expected trading volume increases came in at around 3%, which is modest but meaningful for a platform like Robinhood, where the average account balance sits at roughly $12,000.
Mizuho estimates about 25% of Robinhood’s funded accounts fall into the affected range. That translates to a 1-2% boost to FY2027 revenue. The firm nudged up its FY2026 revenue and EBITDA estimates by around 1%, and FY2027 estimates by around 2%.
Robinhood posted 52% revenue growth over the last twelve months. The stock currently trades at a P/E of around 44x.
Not everyone is equally bullish. Truist lowered its price target to $100 but held its Buy rating, pointing to lower transaction-based revenues in February and March. Citizens cut its target to $155, citing softer trading activity and trimming its Q1 2026 EBITDA estimate to $573.1 million, about 10% below consensus.
Piper Sandler and Cantor Fitzgerald both kept Overweight ratings. Bernstein reiterated Outperform, flagging crypto recovery and prediction market revenue as tailwinds. Its 2026 revenue estimate sits 9% above consensus.
Overall, HOOD carries a Strong Buy consensus from Wall Street, based on 14 Buy and 3 Hold ratings. No analyst currently rates it a Sell. The average price target of $105.19 implies about 16% upside from current levels.
Robinhood’s Gold membership ecosystem has been growing steadily. Net deposits hit $68 billion last year, and margin lending reached a record $18.4 billion. Its 3% cash-back credit card is part of a broader push into financial services.
The company also moved this week to restrict certain high-risk event contracts on its prediction markets platform, a sign it’s trying to attract more serious capital to that segment.
Bernstein has projected prediction market volume could reach $1 trillion by 2030.
Mizuho also pointed to potential catalysts including expansion into Europe and Asia, along with cross-sell opportunities across its growing product suite.
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