Mizuho reiterates a target price of $120 for Robinhood, optimistic about the resilience of encryption and the tokenization of stocks strategy.

U.S. brokerage Robinhood (HOOD) has once again received high praise from mainstream Wall Street institutions due to its innovative products and strong financial performance. Mizuho Securities' latest report reaffirms Robinhood's "outperform" rating and maintains a target price of $120, highlighting long-term confidence in its tokenization of stocks ambitions and the resilience of its crypto assets business. With the global wealth transfer, increasing investment interest among the younger generation, and the acceleration of international market expansion, Robinhood is expected to continue leading the fintech race.

Mizuho: Optimistic about Robinhood seizing the trillion-dollar wealth transfer wave

Mizuho analyst Dan Dolev pointed out that Robinhood is actively positioning itself for the upcoming $100 trillion wealth transfer, focusing on the younger generation's strong interest in private markets, Crypto Assets, and stocks. CEO Vlad Tenev emphasized that Robinhood will center on product innovation and user experience, replicating its successful model from the United States in international markets such as Europe.

Dolev emphasized: "We are impressed by Robinhood's competitiveness in the European market, its net asset growth momentum, and the resilience of cryptocurrency prices." This is also the second time in a month that Mizuho has raised its target price for HOOD, reflecting a high recognition of its growth potential.

Tokenization of stocks and Crypto Assets business becomes the growth engine of the future

As multiple CEX trading platforms scramble to seize the bull market dividends, Robinhood is also actively launching innovative products such as tokenized securities and prediction markets to attract a new generation of investors. Analysts believe that tokenized stocks are expected to become an important channel for non-US investors to participate in the US stock market, further expanding Robinhood's international market share.

In the field of Crypto Assets, Robinhood's crypto trading volume is expected to grow by 32% year-on-year in 2024, reaching $28 billion, with an annual forecast of surpassing $141 billion. Despite a decline in spot trading volume for some peers, Robinhood demonstrates strong resilience through product diversification and user engagement.

The financial report is impressive, and multiple institutions have raised their target prices

Robinhood's Q2 financial report far exceeded market expectations, driving the stock price up over 6% in a single day to $106.37. Revenue for Q2 2025 reached $989 million, higher than the expected $915 million; diluted earnings per share were $0.42, also better than the expected $0.31. Trading revenue increased by 77% year-over-year, net interest income grew by 14%, and the number of subscribers for the Robinhood Gold service reached 3.2 million, significantly boosting other income.

Bank of America analyst Craig Siegenthaler raised the target price from $112 to $119, while Cantor Fitzgerald analyst Brett Knoblauch also increased the target price from $100 to $118. Multiple institutions unanimously gave a "buy" or "add" rating, with the average target price rising to over $106.90.

Customer base and international expansion strategy have competitive advantages

Analysts at Mizuho pointed out that about 15% of Robinhood's net deposits come from competitors, indicating its strong customer acquisition capability. The company can flexibly adjust its incentive policies based on customer lifetime value (LTV) to further strengthen its user base. Analysts are generally optimistic about Robinhood's international market strategy, believing that its tokenization of stocks and other innovative services will become a new entry point for global investors to access U.S. stocks.

Conclusion

Overall, Robinhood continues to gain favor from mainstream Wall Street institutions due to its innovative tokenization of stocks, resilient crypto assets business, and international expansion efforts. Analysts from Mizuho and several other firms have raised their target prices, reflecting the market's confidence in its long term growth potential. With the acceleration of wealth transfer trends and financial technology innovation waves, Robinhood is expected to solidify its leadership position as a new generation global investment platform.