JPMorgan upgraded Robinhood to Neutral from Underweight with a price target of $43, up from $20. The firm made several changes in the brokers, asset managers, and exchanges space, saying alternative asset managers “continue to see compelling secular tailwinds,” with retail and wealth as the “most compelling.” JPMorgan sees exchanges as “less compelling in positive markets,” which results in slower growth than in more asset sensitive financials such as asset managers and some brokers. The firm sees the potential for Trump policies to favor energy exchange businesses, but sees less compelling growth in other asset classes. Brokers is JPMorgan’s favorite sector to begin 2025. More resilient short-term rates will support margin lending and other higher-margin businesses and a retail customer base that is making money likely extends a more active trading period for retail investors, the analyst contends. JPMorgan thinks Robinhood has “made notable progress in legitimizing its operations” versus its primary reliance on meme-stock trading three years prior.