EddieJayonCrypto
20 Mar 25
Investment bank Compass Point initiated coverage of Robinhood Markets Inc., rating it a buy with a price target of $61. The note highlighted increased average revenue from its 12 million crypto users and an improving U.S. regulatory environment. Compass Point analysts estimated the potential for $66...
Compass Point initiated coverage of Robinhood Markets Inc., rating it a buy with a price target of $61 in a note that highlighted increased average revenue from its 12 million crypto users and an improving U.S. regulatory environment.
The analysts estimated an opportunity to generate $665 million from cross-selling to existing U.S. customers and a potential $150 million from staking alone. This reflects traditional finance's surging interest in digital assets, with wider gains in crypto stocks and other risk-on assets.
Robinhood's share price closed up over 6% at just over $42 per share, with recent tailwinds including a 700% surge in fourth-quarter crypto trading revenue, the SEC closing an investigation into its crypto arm, and the launch of a prediction market for the NCAA basketball tournament. According to Compass Point, Robinhood's crypto users provide attractive liquidity for institutional traders.