Key Takeaways
- Five Wall Street firms adjusted their Robinhood (HOOD) price targets downward during early April, pointing to diminished revenue prospects and declining trading activity.
- Wolfe Research implemented the most significant reduction, decreasing its projection by 30% from $115 down to $81 on April 1.
- Mizuho adjusted its target downward to $105 from $110, while reducing revenue projections for 2026 and 2027 by 5% and EBITDA forecasts by 8%.
- The Treasury Department announced Robinhood as a partner for the Trump Accounts program, with the firm committing $1,000 for each qualifying employee child.
- The company’s banking division surpassed $1.5 billion in total deposits, drawing funds from close to 100,000 active customers.
The opening weeks of April have proven challenging for Robinhood (HOOD), as a minimum of five Wall Street research teams reduced their price projections within a concentrated timeframe. Shares have declined 52% during the preceding six-month period, despite the platform reporting 52% revenue expansion over the trailing twelve months.
These adjustments arrived alongside a deceleration in cryptocurrency retail activity on the platform, while broader macroeconomic uncertainty created headwinds across the brokerage industry.
Wolfe Research initiated the series on April 1, reducing its projection by 30% from $115 to $81. Analyst Steven Chubak identified weakening crypto retail trading as the primary catalyst, while maintaining an “Outperform” designation.
The following day, April 2, Needham’s John Todaro reduced his forecast from $100 to $90, simultaneously preserving a Buy recommendation. He indicated that classifying Robinhood as a “financial super app” remained premature, observing that current volume data and declining net interest revenue suggest a more subdued operating environment.
Needham simultaneously lowered its revenue projections for both 2026 and 2027, based on anticipated reductions in trading volumes and net interest income.
Compass Point’s Ed Engel reduced his forecast by 15% on April 2, moving from $127 to $108, referencing weaker Q1 performance indicators. He maintained his Buy recommendation. Engel subsequently reaffirmed that projection on April 6 after the Trump Accounts disclosure.
Buy Ratings Remain Intact Across Analyst Community
Across all target price adjustments, each research firm preserved either a Buy or Outperform designation on the security.
Jefferies lowered its forecast from $88 to $84 on April 6, while retaining a Buy stance. Mizuho made a similar move that same day, adjusting from $110 to $105 while preserving its Outperform classification.
Mizuho indicated its forward projections might prove overly cautious and that the firm “remains constructive” regarding the equity.
The research house reduced its 2026 and 2027 revenue expectations by 5% and EBITDA projections by 8%, attributable to softer net interest income and an increased proportion of cryptocurrency traders, who produce lower revenue capture rates.
Mizuho identified one encouraging development: event contract daily averages climbed 12% during March to approximately 96.3 million, rising from a three-month trough of roughly 85.7 million.
Treasury Department Partnership Announcement
On April 6, the U.S. Treasury Department designated Robinhood as a participating partner for the Trump Accounts program. The platform will function as the brokerage provider and initial trustee for this initiative.
Management announced plans to allocate $1,000 to each account for qualifying children of company employees.
The firm’s banking operations also surpassed $1.5 billion in total deposits from approximately 100,000 funded accounts, representing a 50% deposit growth rate, according to CEO Vlad Tenev.
Raymond James sustained a Market Perform rating, highlighting reduced trading volumes as equity and cryptocurrency markets weakened during the approach to Q1 earnings.
