Robinhood shares rise after Scotiabank initiates coverage with $136 target

  • Scotiabank initiated Robinhood coverage at Sector Outperform with a $136 price target.
  • Robinhood reported second-quarter revenue of $1.31 billion, up 32% year over year.
  • Robinhood's July data included 6.1 billion event contracts, 28.5 million funded accounts and $355 billion in platform assets.

Robinhood Markets shares traded higher Wednesday after Scotiabank initiated coverage with a Sector Outperform rating and a $136 price target, implying more than 31% upside from Tuesday's close. The Canadian bank said Robinhood is evolving beyond a traditional brokerage reliant on stocks, options and cryptocurrency trading, citing revenue opportunities across event contracts, crypto tokenization, banking services, interest income, subscriptions, clearing and international cryptocurrency infrastructure. Robinhood's second-quarter revenue rose 32% year over year to $1.31 billion, while July data showed 6.1 billion event contracts traded, 28.5 million funded accounts and $355 billion in platform assets. The initiation followed Morgan Stanley's upgrade to Overweight with a $150 target and Piper Sandler's increase to $145.

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