Mizuho analyst Dan Dolev sees an $11 per share “floor” value for Robinhood, which includes its $7 per share of cash and $4-$5 per share for the company’s 16M “highly engaged” users, or 35% above the current share price. The analyst remains confident in the company’s current business model. The fear that the SEC could limit, or meaningfully alter, payment for order flow has been a significant drag on Robinhood since its initial public offering, Dolev tells investors in a research note. The analyst, however says a potential payment for order flow revenue drag could turn out to be a positive catalyst by shifting investor focus to the intrinsic value of the company’s cash balance and “attractive” user base.
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