Analyst Ratings February 2, 2026

Piper Sandler Sticks With Overweight on Robinhood as Shares Pull Back

Analyst keeps $155 price target while highlighting short-term headwinds and reaffirming long-term conviction in retail trading growth

By Nina Shah HOOD
Piper Sandler Sticks With Overweight on Robinhood as Shares Pull Back
HOOD

Piper Sandler has reiterated an Overweight rating and a $155.00 price objective for Robinhood Markets despite a roughly 35% decline from recent highs. While the firm flags near-term risks tied to cryptocurrency volumes, seasonal drops in prediction-market revenue and questions about the durability of retail trading strength, it continues to view Robinhood as the leading fintech opportunity to capture secular growth in retail investing and as the closest contender to a 'super app' among peers.

Key Points

  • Piper Sandler reiterates Overweight on Robinhood with a $155.00 price target; this target is inside the analyst range of $90-$180.
  • Short-term headwinds include weaker cryptocurrency trading volumes and prices, the seasonal conclusion of football-related prediction-market revenue, and uncertainty over the longevity of retail trading strength.
  • Robinhood is expanding its product suite and market footprint - launching a U.K. stocks & shares ISA, being considered for a role overseeing certain new accounts in the U.S., pursuing SpaceX IPO allocations for retail clients, and acquiring a 90% stake in MIAX Derivatives Exchange.

Piper Sandler has reconfirmed its Overweight recommendation on Robinhood Markets, maintaining a $155.00 price target even as the stock has retraced sharply from recent peaks. The firm’s $155 target sits inside the analyst range of $90 to $180.


Shares of the financial services platform have retreated by about 35% since posting an all-time closing high near $152.46 on October 9, according to Piper Sandler’s report. The stock is trading around $99.48 and remains roughly 35% under its 52-week high of $153.86, with available technical indicators suggesting the shares are in oversold territory.

Piper Sandler identifies three principal short-term dynamics that could pressure the shares. First, a slowdown in cryptocurrency trading volumes combined with falling token prices may weigh on transaction-related revenue. Second, the end of the football season is expected to curtail activity in the company’s prediction markets, reducing that revenue stream. Third, there is mounting uncertainty around whether the recent uplift in retail trading activity is sustainable.

The firm also highlights Robinhood’s high market sensitivity, noting a beta of 2.45, which signals greater price volatility relative to the broader market.


Despite these nearer-term concerns, Piper Sandler retains a constructive longer-term view. The research team regards Robinhood as the top pick to benefit from secular expansion in retail trading activity and characterizes the platform as the closest fintech it has seen to achieving a true "super app" ecosystem.

Robinhood has been active on multiple strategic fronts. In the U.K., Robinhood UK is preparing to introduce a stocks & shares ISA that will carry no platform fees, no commissions, and will apply a 0.10% foreign exchange fee per trade. The offer also includes a 2% cash bonus on new eligible contributions made before April 2026.

On a separate front, Robinhood is reported to be under consideration by the federal government for a role in overseeing new "Trump accounts" for children, with an announcement expected soon. The company is also competing to receive a notable allocation of shares in the planned SpaceX initial public offering, with the intention of offering those shares to retail clients through its IPO Access channel.

Analyst activity around Robinhood has been active. Cantor Fitzgerald recently initiated coverage with an Overweight rating and set a $130 price target, citing the company’s growth potential in digital financial services.

Robinhood has also moved to expand its market infrastructure footprint by acquiring a 90% stake in the MIAX Derivatives Exchange through a joint venture with Susquehanna International Group. MIAX retains a 10% interest in the exchange, which is approved to list and clear a range of financial products.


Overall, the combination of strategic product expansion, efforts to broaden access to IPOs for retail investors, and moves into market infrastructure underpin Piper Sandler’s positive long-term stance, even as the firm cautions investors about several short-term headwinds that could keep the stock volatile.

Risks

  • Declining cryptocurrency trading volumes and falling token prices could reduce transaction revenue - impacts the crypto trading and fintech sectors.
  • Seasonal drop in prediction-market activity following the end of the football season may lower related revenues - affects prediction markets and consumer engagement metrics in fintech.
  • Uncertainty about whether recent retail trading strength can be sustained, contributing to higher volatility given the stock’s beta of 2.45 - influences retail investing and overall market sentiment toward fintech equities.

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