TLDR
- Multiple analysts cut their price targets on Robinhood (HOOD) in early April, citing softer revenue and slower trading volumes.
- Wolfe Research made the steepest cut, slashing its target 30% from $115 to $81 on April 1.
- Mizuho lowered its target to $105 from $110, trimming 2026 and 2027 revenue estimates by 5% and EBITDA by 8%.
- Robinhood was named a partner in the Trump Accounts initiative, with the company pledging $1,000 per eligible employee child.
- Robinhood’s banking product crossed $1.5 billion in deposits from nearly 100,000 funded customers.
Robinhood (HOOD) has had a rough start to April, with at least five analyst firms trimming their price targets in a matter of days. The stock is down 52% over the past six months, even as the company posted 52% revenue growth over the last twelve months.
The cuts came as crypto retail trading slowed on the platform, and macro uncertainty weighed on the broader brokerage sector.
Wolfe Research led the pack on April 1, cutting its target by 30% from $115 to $81. Analyst Steven Chubak pointed to slower crypto retail trading as the main driver, though he kept an “Outperform” rating.
On April 2, Needham’s John Todaro cut his target from $100 to $90, also keeping a Buy. He said it was too early to call Robinhood a “financial super app,” noting that recent volume metrics and lower net interest revenue point to a more muted environment.
Needham also lowered its revenue estimates for 2026 and 2027, driven by expectations of lower trading volumes and net interest income.
Compass Point’s Ed Engel trimmed his target 15% on April 2, from $127 to $108, citing softer Q1 key performance indicators. He held his Buy rating. Engel later reiterated that target on April 6 following the Trump Accounts announcement.
Analysts Still Bullish Despite Cuts
Despite the wave of downgrades to price targets, every firm mentioned maintained either a Buy or Outperform rating on the stock.
Jefferies cut its target from $88 to $84 on April 6, while keeping a Buy. Mizuho followed the same day, trimming from $110 to $105 but holding its Outperform rating.
Mizuho said its forward estimates may prove conservative and that it “remains constructive” on the stock.
The firm cut its 2026 and 2027 revenue forecasts by 5% and EBITDA estimates by 8%, tied to softer net interest income and a higher share of crypto traders, who generate lower take rates.
Mizuho did flag one positive: event contract per diem trends rose 12% in March to around 96.3 million, up from a three-month low of roughly 85.7 million.
Trump Accounts Partnership
On April 6, the U.S. Treasury Department confirmed Robinhood as a partner in the Trump Accounts initiative. Robinhood will serve as the brokerage and initial trustee for the program.
The company said it will contribute $1,000 to each account for eligible children of its employees.
Robinhood’s banking division also crossed $1.5 billion in deposits from nearly 100,000 funded customers, a 50% increase in deposits, according to CEO Vlad Tenev.
Raymond James maintained a Market Perform rating, noting a decline in trading volumes as equity and crypto markets moved lower heading into Q1 results.
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