Evercore sees 19% upside potential for Robinhood shares. Should you buy?

Evercore ISI initiated coverage of shares in the Robinhood trading platform and immediately recommended buying the stock, according to CNBC. The key reason for optimism is the company’s ability to launch new products and monetize them, increase customer deposits, and develop promising business lines. Analysts believe this track record will enable the platform to grow its revenue and maintain a high market valuation.

On October 12, the research firm Evercore initiated coverage of Robinhood shares with an “Outperform” rating (meaning “above market,” equivalent to a buy recommendation) and a price target of $130, which implies a 19% increase from Friday’s closing price, October 9.

"If you create a growth flywheel, they [customers] will come," wrote Evercore ISI analyst Adam Frisch in a note to clients on October 12, as quoted by CNBC. According to the analyst, Robinhood is successfully developing new products and turning them into revenue streams. The company aims to become a one-stop financial services platform for existing customers and can easily adapt to serve more affluent users by offering them a wide range of tools and a user-friendly interface, Frisch writes.

The company has taken a number of steps to mitigate the negative factors holding back its business growth. In particular, Robinhood is reducing its reliance on interest margins from customer cash balances, and its fees are the best in the industry or close to it, notes Frisch.

According to an Evercore analyst, additional growth potential lies in new areas, including prediction markets and the blockchain project Chain. Robinhood has already brought 13 products to the $100 million annual revenue level. This track record, the analyst believes, confirms the company’s ability to successfully launch new offerings and attract customers to them. “We believe this track record will allow the company to maintain a premium valuation over the next few years,” Frish wrote.

Evercore ISI's recommendation is in line with the prevailing view among Wall Street analysts. According to MarketWatch, 35 analysts cover Robinhood: 28 of them recommend buying the stock, five advise holding it, and the remaining two analysts recommend selling it. Three months ago, there were 23 “buy” recommendations, while six analysts held a neutral stance, and the number of “sell” ratings remained the same.

According to analysts, the average target price for Robinhood shares is $138, which implies a 27% increase from the closing price on October 9.

During trading on October 12, Robinhood shares fell 0.75%, and since the beginning of 2026, the stock has lost nearly 4% of its value. By comparison, the S&P 500 broad-market index rose 14% over the same period.

This article was AI-translated and verified by a human editor