Robinhood Markets Soars After Bank of America Double Upgrade, Price Target Raised to $24

By John Lopez

May 17, 2024 04:23 PM EDT

Robinhood Markets Inc. is witnessing a surge in stock value following a double upgrade by Bank of America Corp., marking its best week of the year amid a frenzy of meme stocks. 

Robinhood Receives Double Upgrade and Price Target Boost

Bloomberg reports that Bank of America analyst Craig Siegenthaler led the charge, revising the online brokerage's recommendation from underperform to buy and substantially increasing the price target to $24 from $14. This move reflects a significant 34% upside potential for the shares.

Shares of Robinhood, headquartered in Menlo Park, California, have rallied an impressive 23% this week, putting them on course for their most successful week in 2024. The surge can be partially attributed to retail traders flocking to the platform to participate in the latest meme stock craze.

READ MORE: Roaring Kitty: Man Behind 2021's Meme Stock Surge, Driving GameStop, AMC Rally Again

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This photo illustration shows the logo of trading application Robinhood on a mobile phone in Arlington, Virginia on January 28, 2021.
(Photo : Photo by OLIVIER DOULIERY/AFP via Getty Images)

Retail Frenzy Fuels Robinhood's Remarkable Week

Siegenthaler, who had previously held a bearish stance on the stock since its public debut three years ago, highlighted the changing landscape, noting a rebound in multiple metrics at Robinhood since the emergence of a new bull market last year. He emphasized the company's increasing profitability, driven by efficient expense management.

"Following the emergence of a new bull market last year, we have monitored a rebound in multiple metrics at Robinhood Markets and we expect this to continue through 2026," Siegenthaler said in a note.

The analyst's bullish outlook is further supported by favorable macroeconomic conditions, with interest rates projected to decline and economic growth surprising to the upside. These factors and the resurgence of stock and crypto markets paint a promising picture for Robinhood's future performance.

READ NEXT: SEC Warns Robinhood for Possibly Violating Securities Laws With its Crypto Business Operations

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