Robinhood price target lowered to $7 from $11 at JPMorgan - InvestingChannel

Robinhood price target lowered to $7 from $11 at JPMorgan

JPMorgan analyst Kenneth Worthington lowered the firm’s price target on Robinhood to $7 from $11 and keeps an Underweight rating on the shares. The analyst reduced estimates based on a weaker trading volume outlook and lower margin balances following the release of Robinhood’s May metrics. In flat market in May, Robinhood clients were down 900 basis points, and margin balances also fell for the month by 20% to $4.2B, Worthington tells investors in a research note. The analyst reduced the positive impact he previously modeled for fully paid securities lending and by reducing margin levels. The market “continues continue to deteriorate for Robinhood as regulatory risks rise,” says Worthington.

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