Goldman Sachs analyst Will Nance downgraded Robinhood to Sell from Neutral with a price target of $13, down from $15. Softening retail engagement levels, particularly among the low-end consumer, continued weakness in account growth, and a “limited path to near term profitability” are likely to limit the stock’s outperformance over the next twelve months, Nance tells investors in a research note. In the near term, intra-quarter app download data suggests Robinhood’s user growth has “remained depressed,” says the analyst, who sees an acceleration in user growth as a key requirement for the shares to re-rate higher. Nance says Street estimates are still too high and Robinhood has a “high bar” to reach profitability in 2023.
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