Robinhood Markets Inc (NASDAQ: HOOD) has gained a whopping 70% over the past three months but a Mizuho analyst is convinced it could extend the rally further in the coming months.
Here’s why Robinhood stock is worth buying
Dan Dolev reiterated his “buy” rating on $HOOD this morning after the financial services company reported quarterly earnings that were “as good as gold”.
Robinhood, the analyst told CNBC in an interview on Thursday, is evidently “firing on all cylinders” considering it ended Q1 with 23.9 million funded customers in total – up some 810,000 versus last year.
With a 65% increase in assets under custody and a 40% gain in revenue on a year-over-year basis, “we could not have asked for a better Q1”, he added.
Note that Robinhood stock is down 10% versus its YTD high at writing.
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What else could help $HOOD push further up?
Dan Dolev is confident that recent gains in $HOOD are sustainable as it’s now winning share from the likes of Charles Schwab. On CNBC’s “Squawk Box”, he said today:
People are moving their retirement assets to Robinhood. It’s becoming more than just a meme stock trading platform. That’s the future of $HOOD. I stack it really high up on my list.
The Mizuho analyst sees upside in Robinhood shares to $21 even though the Nasdaq-listed firm recently received a “Wells Notice” from the U.S. Securities and Exchange Commission.
He expects $HOOD to benefit as the financial technology company continues to expand in Europe and eventually delivers on its plans of penetrating Asia as well.
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