Robinhood Markets gains after Morgan Stanley upgrades to 'overweight'

Shares of retail trading platform Robinhood HOOD.O were up 3.7% to $108.69 in premarket trading after Morgan Stanley upgraded the stock to "overweight" from "equal-weight" and raised its target price to $150 from $124, representing a 43% upside to the stock's last close.

The brokerage sees multiple catalysts supporting the company's revenue growth, including organic asset growth, active trader share gains and newer products supporting a longer growth runway than previously accounted for.

"HOOD's expanding product set gives customers more reasons to consolidate assets on the platform and reduces graduation risk as its largely Gen Y/Z customer base accumulates greater wealth and financial complexity," Morgan Stanley said.

Twenty-two of 28 brokerages rate the stock "buy" or higher, five rate it "hold" and one rates it "sell"; the median price target is $124.5, according to data compiled by LSEG.

Up to the last close, the stock was down 7.3% year to date.