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Robin Hood (NASDAQ:BELL) stock Won 3.6% in premarket trading on Thursday, after Deutsche Bank upgraded the retail trading app from Hold to Buy in a mid-third-quarter outlook note on brokers, asset managers and exchanges.
“With the recent market sell-off and potentially volatile conditions in the near future, “In the US election, we see electronic corridors as the most attractive for the next 12 months, but they also have positive catalysts in the near term,” wrote analyst Brian Bedell.
He estimates that Robinhood (HOOD) has upside potential of more than 20% over the next 12 months, with the stock down about 25% from its peak in July.
The electronic brokerage group is generally “the next best positioned in the near term” if volatility continues in the equity and fixed-income markets, “given its defensive characteristics in that background scenario.”
Bedell's Buy rating differs from the SA Quant system rating and the average SA analyst rating, both of which are Hold, and is in line with the average sell-side analyst rating of Buy.
Robinhood’s (HOOD) premarket surge also comes after the company said its July trading volumes rose sharply across stocks, options and cryptocurrencies.
