New Forecasts: Here's What Analysts Think The Future Holds For Robinhood Markets, Inc. (NASDAQ:HOOD)

Shareholders in Robinhood Markets, Inc. (NASDAQ:HOOD) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects.

After the upgrade, the 14 analysts covering Robinhood Markets are now predicting revenues of US$3.7b in 2025. If met, this would reflect a major 26% improvement in sales compared to the last 12 months. Statutory earnings per share are anticipated to drop 11% to US$1.42 in the same period. Before this latest update, the analysts had been forecasting revenues of US$3.4b and earnings per share (EPS) of US$1.37 in 2025. Sentiment certainly seems to have improved in recent times, with a nice gain to revenue and a small lift in earnings per share estimates.

View our latest analysis for Robinhood Markets

It will come as no surprise to learn that the analysts have increased their price target for Robinhood Markets 6.0% to US$68.59 on the back of these upgrades.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's clear from the latest estimates that Robinhood Markets' rate of growth is expected to accelerate meaningfully, with the forecast 26% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 20% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 5.7% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Robinhood Markets to grow faster than the wider industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts upgraded their earnings per share estimates for this year, expecting improving business conditions. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. There was also a nice increase in the price target, with analysts apparently feeling that the intrinsic value of the business is improving. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Robinhood Markets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Robinhood Markets going out to 2027, and you can see them free on our platform here..

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies backed by insiders.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.