Morgan Stanley upgraded Robinhood Markets (HOOD) to overweight from equal-weight.
The bank raised its price target to $150 from $124. This new target implies a 43% upside from the stock's previous closing price.
Analysts cited expanding product capabilities for improving customer economics. New retirement and credit card offerings are driving users to hold more assets on the platform. The introduction of short selling and futures trading has further increased customer engagement.
Robinhood shares climbed in premarket trading following the announcement. Morgan Stanley’s bullish outlook does not rely on a rebound in cryptocurrency volumes.