Robinhood stock price target raised to $172 from $145 at Mizuho on strong growth

Mizuho raised its price target on Robinhood (HOOD) to $172 from $145, maintaining an Outperform rating, citing a "stellar year" and robust Q3 2025 earnings that significantly surpassed analyst expectations for both EPS and revenue. This positive outlook is driven by the rapid growth of its Prediction Markets, which exceeded $100 million in annualized revenue and is tracking towards a $300 million run rate, alongside strong overall revenue growth of 59.4% and an expanding margin book, signaling strong operational momentum and positive analyst sentiment for future profitability.

Analysis

Mizuho has raised its price target for Robinhood (HOOD) to $172 from $145, maintaining an Outperform rating, citing a "stellar year" and robust third-quarter 2025 results. The company reported Q3 EPS of $0.61, surpassing analyst forecasts of $0.51 by 19.61%, and revenue of $1.27 billion, exceeding expectations of $1.19 billion, contributing to a 377% return over the past year. This positive performance has been met with a strong investor reaction.

Key growth drivers include the rapid success of its Prediction Markets feature, which achieved over $100 million in annualized revenue within a year and is now tracking towards a $300 million run rate based on October volumes. Overall revenue grew 59.4% in the last twelve months to $3.57 billion, with analysts projecting 46% revenue growth for the fiscal year, while the margin book expanded significantly to $16 billion in October from a Q3 average of $11.8 billion.

Mizuho expressed optimism regarding Robinhood's global expansion plans and deeper penetration into institutional markets, noting the company "continues to fire on all cylinders" with its growth initiatives. Three analysts have revised earnings upwards for the upcoming period, and the company is expected to remain profitable this year.

However, InvestingPro analysis suggests the stock may be trading above its Fair Value, despite the strong operational momentum and positive analyst sentiment. The company maintains total debt of $13 billion with a debt-to-equity ratio of 1.61.

Key Decisions for Investors

• Investors should evaluate Robinhood's sustained operational momentum, particularly the rapid growth of its Prediction Markets and expanding margin book, which underpin the recent analyst upgrade.
• Monitor the company's progress on global expansion and institutional market penetration, as these strategic initiatives are crucial for long-term revenue diversification and growth.
• Conduct independent valuation analysis, considering the InvestingPro assessment that the stock may be trading above its fair value, to balance growth prospects with potential overvaluation risks.