Robinhood Markets’ stock saw a significant rise on Thursday after the e-brokerage reported robust user growth and received an upgrade from Deutsche Bank. The company announced it had 24.2 million funded customers at the end of July, an increase of about 70,000 from June and over 1 million from the previous year. Assets under custody (AUC) also grew to $144.5 billion, reflecting a 3% month-over-month increase and a 53% rise year-over-year.
Deutsche Bank upgraded Robinhood’s rating from “hold” to “buy” and raised its price target from $21 to $24, citing the company’s “attractive growth potential.” The analysts noted solid growth in transaction revenue, effective cost control, and an expanded business model, including Gold subscriptions, retirement accounts, and international efforts.
Following the upgrade, Robinhood’s shares ended the day 4.8% higher at $19.55, marking a 53% gain for the year-to-date. Deutsche Bank highlighted the company’s strong positioning amid ongoing market volatility and its defensive earnings characteristics in such conditions.
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