Robinhood Markets Inc (NASDAQ:HOOD). ($HOOD) stock jumped 5% on Monday after Morgan Stanley (NYSE:MS) raised its price target to $55 from $24 and upgraded its rating to ‘Overweight.’The brokerage noted that the company’s revenue growth looks stronger after the 2024 U.S. election. It believes Robinhood could see more sustained retail trading as support for crypto broadens, acquisitions open up and “animal spirits revive” under President-elect Donald Trump. During his campaign, Trump promised support for Bitcoin ($BTC.X) and other digital assets, proposing initiatives such as a federal Bitcoin reserve and expanding Bitcoin mining operations in the U.S.
Reports indicate that he may establish a new White House position focused entirely on cryptocurrency policy once he takes office in January.Last week, it was rumoured that Trump Media & Technology Group Corp. ($DJT), where Trump is the majority shareholder, was considering the acquisition of Bakkt, a cryptocurrency trading platform. Another report revealed potential plans for the company’s crypto payment service, TruthFi.Morgan Stanley also said Robinhood is "clearly executing" on plans to broaden its offerings to capture more wallet share and expand its total addressable market, given the recent acquisition of TradePMR, a custodial and portfolio management platform for registered investment advisors (RIAs).Robinhood Markets Inc. Sentiment and Message Volume on Nov 25 as of 10:15 a.m. ET | Source: StocktwitsRetail sentiment around the stock has flipped to ‘bullish’ (67/100) from ‘bearish a day ago, along with an uptick in chatter to ‘normal’ from ‘low’.
While Robinhood’s stock has more than quadrupled in value so far this year, Morgan Stanley sees "more room to run" given the company’s "discounted valuation," expanding pace of new initiatives and animal spirits post-election that it thinks will likely continue into 2025.
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