Morgan Stanley upgraded Robinhood Markets (HOOD) to Overweight from Equal Weight on Tuesday. Analysts raised the price target to $150 from $124. This new target implies a potential upside of over 40% from the previous closing price. Shares rose during premarket and morning trading following the announcement.
Analysts cited expanding product capabilities for improving customer economics. New offerings are driving increased assets and activity per user. The company now operates 13 business lines that each generate over $100 million in annualized revenue. Morgan Stanley also increased its earnings per share forecasts for the next three years.