Is Robinhood luring high-net-worth clients from Schwab and IBKR?

Robinhood Markets Inc (NASDAQ: HOOD) is destined to go higher from here since there wasn’t “anything not to like” in its Q1 earnings release, says Dan Dolev, a senior Mizuho analyst.

HOOD ended its first quarter with 14.4 million monthly active users, which was actually down from 14.9 million at the end of Q4 and 15.1 million than analysts had forecast.

Still, the quarter overall was a “record” one for the fintech firm and, therefore, warrants an investment at current levels, Dolev argued in a post-earnings CNBC interview.

Note that Robinhood stock has already rallied nearly 50% in recent weeks.

Why is Mizuho super bullish on Robinhood stock?

Mizuho is uber bullish on Robinhood Markets as it’s unusually “aggressive in addressing” a $600 billion total addressable market (TAM).

The financial services company is expanding rather quickly into new territories, including Asia and Europe, which could help its revenue soar from $3 billion to $30 billion over the next ten years, according to its analyst Dan Dolev.

“The product velocity is the best one I’ve ever seen – pretty much every quarter, there’s something new,” he told CNBC in an interview this week.

HOOD more than doubled its per-share earnings and improved its revenue by 50% in Q1. Still, the fintech stock does not pay a dividend at writing.

HOOD is going after IBKR and Schwab’s clientele

Mizuho’s Dolev is convinced that Robinhood’s days of being thought of as a “joke for millennials” are long gone. Today, it’s being taken much more seriously.

In fact, HOOD has even started going after the wealthier clientele that typically goes to the likes of Charles Schwab and Interactive Brokers – and its finding success in stealing that more robust client-base as well, he added.

The strategy helped Robinhood Markets Inc record about $18 billion worth of deposits in its first financial quarter.

All in all, Dan Dolev expects HOOD shares to hit $80 by the end of this year. His price target indicates potential for about a 60% gain from current levels.

Robinhood Q1 earnings highlights

Here are the key figures from Robinhood’s Q1 earnings release:

• Earned 37 cents a share versus 33 cents per share expected
• Generated $927 million in revenue versus $920 million expected
• Improved transaction-based revenue by a more-than-expected 77%
• Doubled crypto revenue to $252 million – well above $247 million consensus

Increased options revenue by a more-than-expected 56% as well While not as bullish as Mizuho, other Wall Street shops see further upside in Robinhood stock as well. The consensus rating on HOOD shares currently sits at “overweight” with the mean target of $57 indicating about a 15% upside from here.

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