-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
HOOD is trading down today (~13%) as investors weigh softer-than-anticipated transaction revenue against a newly announced $100M increase in the 2026 expense outlook. In our view, the mixed April trends, with booming equity volumes but stagnant crypto activity, were not enough to overcome concerns about near-term margin pressure from the increased spending. We lower our target by $17 to $93, representing 31.0x our 2028 EPS view vs. the peer average of 26.1x. We decrease our 2026 EPS estimate by $0.30 to $1.94, keep 2027's at $2.53, and decrease 2028's by $0.49 to $3.00. Our revenue and adj. EBITDA margin forecasts are $5.15B (+15%) and 52% in 2026, $6.19B (+20%) and 57% in 2027, and $6.90B (+11%) and 58% in 2028. On a positive note, HOOD secured the "Trump Accounts" opportunity, confirming our view that it was the ideal candidate to capture millions of future investors. This win, coupled with strong momentum in prediction markets and strategic international expansion, underpin a diversified long-term growth pipeline.