Key Takeaways
- Truist cut its Robinhood price target to $123 from $125 on Oct. 30, two days after cutting it from $134, and kept its Buy rating, leaving 45% upside.
- The latest cut came from lower revenue estimates for Robinhood Chain, a small, new business, and Truist made no other big changes to its model.
- Truist’s target works out to roughly 40x forward earnings, above Robinhood’s three-year average of 36x and close to its one-year average of 39x.
- The target looks within reach if Robinhood’s expected jump in 2027 earnings arrives, and the 2027 expense outlook early next year is the first test.
Robinhood Markets (HOOD) has lost 38% of its value over the past year, and its Q3 report on Oct. 27 had analysts trimming their targets again.
Truist did it twice. On Friday, it cut its target to $123 from $125, two days after cutting it from $134, and kept its Buy rating. That’s still 45% above Friday’s close of $85.
Crypto spoiled a record quarter
Robinhood’s Q3 revenue rose 12% to a record $1.4 billion, and event contracts revenue grew more than sixfold to $173 million.
Crypto went the other way as revenue fell 55% to $120 million. Diluted EPS fell 16% to $0.51 and missed the 55-cent consensus.
Truist trimmed its smallest bet
Truist’s first cut came on weaker equity, options and crypto volumes.
Friday’s cut was about Robinhood Chain, the blockchain Robinhood launched on July 1. Truist now expects $30 million of Chain revenue in 2027, down from $146 million. It made no other big changes to its model.
That’s a small change next to the $6.9 billion of revenue analysts expect from Robinhood in 2027.
TIKR tracks 32 analysts on Robinhood. How many say “Buy”?
See the full breakdown of Buy, Hold, and Sell ratings on Robinhood, along with Wall Street’s revenue and earnings estimates, all in one place. More than 500,000 investors use TIKR to research stocks like this one. See Robinhood’s Analyst Ratings
Does $123 add up?
The consensus target is $134. That’s down from $147 a year ago but up from a low of $98 in May. 32 analysts cover the stock, and their targets run from $59 to $170.
Analysts expect normalized EPS of $2.42 this year, then $3.39 in 2027 and $4.37 in 2028:
This year’s estimate slipped after the report, from $2.54 on Oct. 23, but the 2027 estimate barely moved. Outside crypto, I don’t see much in the quarter that calls for deeper cuts.
Robinhood traded at 27x forward earnings at Friday’s close, down from 75x in October 2025:
Truist’s $123 works out to roughly 40x those forward earnings. That’s above the 36x Robinhood has averaged over the past three years, and close to its 39x average over the past year.
Within reach, if 2027 delivers
The main risk is event contracts, Robinhood’s fastest-growing line. Ohio ordered Robinhood to stop offering sports contracts there by Oct. 16.
Still, Truist’s target looks within reach. It asks investors to pay about what they’ve paid for Robinhood over the past year, and the 2027 estimates it rests on held up through a messy quarter.
But investors have already cut that multiple by more than half in a year, and they’ll want to see the 2027 jump in earnings before they pay up again.
The first read on that comes with Q4 results early next year, when Robinhood should give its 2027 expense outlook.
So what is Robinhood stock actually worth?
TIKR lets you forecast the future price of any stock in less than a minute. Just enter a few assumptions into TIKR’s valuation model and see what Robinhood could be worth. Start from Wall Street consensus estimates, or adjust the inputs to reflect your own view of the business. It’s free to use.
Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any of the stocks mentioned. Thank you for reading, and happy investing!
