Analysts have mixed opinions on Robinhood Markets Inc. B of A Securities analyst Craig Siegenthaler initiated coverage with an Underperform and a price target of $22, implying a 12.8 percent upside. Siegenthaler assumed coverage in a note partially titled “The perfect storm is over.” While he forecasts strong growth, he thinks the current valuation may be underappreciating factors. The factors include the reversal of the COVID-19 related tailwinds, an overstated growth trajectory in 2020-21 due to the “meme” stock phenomenon, regulatory risks related to payment for order flow, and its already high market share in its unbrokered addressable market. Robinhood is creating a modern financial services platform. It designs its products and services and delivers them through a single, app-based cloud platform supported by proprietary technology. JPMorgan analyst Kenneth Worthington lowered the price target to $17 from $26, implying a 12.8 percent downside, and reiterated Overweight. Worthington notes that with the selling pressure “seemingly from …
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