Key Takeaways
- Five Wall Street firms reduced their Robinhood (HOOD) price targets during early April, pointing to weaker revenue projections and declining trading activity.
- The most aggressive reduction came from Wolfe Research, which dropped its target 30% from $115 down to $81 on April 1.
- Mizuho Securities reduced its target from $110 to $105, cutting revenue forecasts for 2026 and 2027 by 5% and EBITDA projections by 8%.
- The company announced its role as a partner in the Trump Accounts program, committing $1,000 for each qualifying employee’s child.
- The platform’s banking service surpassed $1.5 billion in total deposits from approximately 100,000 active customers.
April has started on a challenging note for Robinhood (HOOD), as no fewer than five Wall Street analyst houses have reduced their price objectives within just a few days. Despite a 52% revenue increase over the trailing twelve-month period, shares have plummeted 52% during the last half-year.
The downgrades arrived amid declining cryptocurrency retail activity on the platform and growing macroeconomic uncertainty affecting the entire brokerage industry.
Wolfe Research made the most dramatic adjustment on April 1, slashing its price objective by 30% from $115 down to $81. Analyst Steven Chubak attributed the reduction primarily to weakening crypto retail trading activity, while maintaining his “Outperform” recommendation.
The following day, April 2, Needham analyst John Todaro reduced his price target from $100 to $90 while retaining a Buy recommendation. He suggested it remained premature to classify Robinhood as a “financial super app,” observing that current volume data and reduced net interest revenue indicate a more subdued operating environment.
Needham simultaneously reduced its revenue projections for both 2026 and 2027, based on anticipated declines in trading activity and net interest income.
Compass Point analyst Ed Engel reduced his price target by 15% on April 2, lowering it from $127 to $108 due to underwhelming Q1 performance metrics. He maintained his Buy recommendation. Engel subsequently confirmed that target on April 6 after the Trump Accounts revelation.
Wall Street Maintains Positive Outlook Despite Target Reductions
Notably, despite the synchronized wave of price target reductions, each firm preserved either a Buy or Outperform stance on the shares.
Jefferies reduced its target from $88 to $84 on April 6 while maintaining a Buy rating. Mizuho made a similar move that same day, lowering its target from $110 to $105 while keeping its Outperform designation.
Mizuho indicated that its updated projections might prove overly cautious and that the firm “remains constructive” regarding the stock’s prospects.
The investment bank reduced its 2026 and 2027 revenue outlooks by 5% and trimmed EBITDA forecasts by 8%, linked to softer net interest income expectations and an increased proportion of cryptocurrency traders, who produce lower revenue capture rates.
Mizuho did highlight a bright spot: event contract daily volume trends climbed 12% during March to approximately 96.3 million, rebounding from a three-month trough of roughly 85.7 million.
Trump Accounts Initiative Partnership
On April 6, the U.S. Treasury Department announced Robinhood as an official partner in the Trump Accounts initiative. The company will function as both the brokerage platform and initial trustee for this program.
Robinhood announced plans to deposit $1,000 into each account established for qualifying children of company employees.
The firm’s banking segment also reached $1.5 billion in total deposits across nearly 100,000 funded customer accounts, representing a 50% deposit growth, according to statements from CEO Vlad Tenev.
Raymond James kept a Market Perform rating, highlighting decreased trading volumes as equity and cryptocurrency markets retreated heading into the Q1 earnings period.
