Jefferies initiates Robinhood Buy rating at $88 target, cites 27.4M users
Jefferies initiated coverage of Robinhood Markets with a Buy rating and $88 price target, citing its evolution into a financial super app as funded customers rose 7% to 27.4 million. Non-transactional revenues expanded to 41% of total while the stock trades at 26 times 2027 earnings.
1. Jefferies Initiates Coverage
Jefferies began coverage of Robinhood Markets with a Buy rating and $88 price target, highlighting the firm’s transition toward a comprehensive financial services super app to leverage rising global retail participation.
2. Customer Base Expansion
Funded customer count reached 27.4 million in February, marking a 7% increase year-on-year and reinforcing the company’s ability to attract next-generation investors.
3. Valuation Multiples
Trading at 26 times estimated 2027 earnings and a trailing price/tangible book ratio of 7.74X versus the 2.95X industry average, Robinhood’s valuation reflects expectations for sustained growth and profitability improvements.
4. Revenue Diversification
Non-transactional revenues now constitute 41% of total, up from 23% in 2021, as rapid product expansion into tokenization, custody and prediction markets broadens the company’s revenue streams.