Rosenblatt Starts Robinhood at Buy With $135 Target

Rosenblatt initiated coverage of Robinhood Markets (HOOD) on Tuesday with a Buy rating and a $135 price target. The firm argues that investors underestimate how far Robinhood has moved from a commission-free trading app to a broader financial platform. Rosenblatt also points to continued brokerage market-share gains and to changes in pattern day trading rules that could free up the company's most valuable active traders. Robinhood's own results and filings are on its investor relations site.

Rosenblatt's case

The argument summaries come from the note as relayed to us, and we could not read the full report. A published summary of the initiation confirms the Buy rating, the $135 target and the view that Robinhood is evolving into a financial services platform the market has not fully priced in. It does not repeat the market-share or day-trading points, and it does not name the analyst. The implied upside is our calculation from a share price of $98.21 in that summary, a price we could not verify, so check live quotes.

What changed in the day-trading rules

The SEC approved a FINRA amendment to Rule 4210 on April 14, 2026, on an accelerated basis. The change eliminates the pattern day trader designation and the $25,000 minimum equity requirement, replacing them with intraday margin standards that measure risk against a customer's positions during the day rather than a single account-size threshold. Under the old rule, accounts below $25,000 were limited to four day trades in five business days. Coverage at the time said FINRA still had to publish a final notice and an implementation schedule, so we could not find an effective date. It also said brokers may set their own intraday margin policies and could add house minimums or tighter risk checks at first. Robinhood shares rose in early trading when the order was issued, according to Reuters as cited by Hoodline. Coverage also flagged a risk that inexperienced traders could take on more leverage.

A broader platform

A September 30 report listed Robinhood's recent product pushes, including weekend trading for U.S. stocks and ETFs (pending approval), extended options hours, one-cancels-other orders, AI scanning tools and an in-app AI trading agent, and U.S. crypto perpetual futures. It also reported that event-contract volume rose 17% from the prior month and that crypto trading in September was the highest since February. These are reported figures, and we have not checked them against Robinhood's own filings. They show the range of products Rosenblatt is pointing to in arguing that Robinhood is more than a trading app. For the crypto backdrop, see our report on crypto markets.

Where the Street stands

The other ratings are as of a September 30 report, so some may have changed. Rosenblatt's $135 matches BTIG's, and the targets in that report span $85 to $135, by our calculation. The same report put the stock around $119 to $122 that day, and the $98.21 price in the Rosenblatt summary would be about 18% lower, by our calculation, though the two prices come from different sources.

What could go wrong

GuruFocus's summary of the initiation flags a price-to-sales ratio of about 18 against a historical median of about 9, and its own fair-value model puts the stock about 23% above fair value. It also reports $663.9 million of insider sales against $55.3 million of purchases over the past 12 months. Those are that service's figures, not Rosenblatt's. Other risks reported include crypto and leverage volatility and a slower-than-expected rollout of newer products. This is informational, not a recommendation to buy or sell.

Sources: Robinhood investor relations and FINRA Rule 4210, plus published summaries of Rosenblatt's initiation, the SEC order and Robinhood's product news. We did not read the Rosenblatt report itself. The market-share, day-trading and valuation points come from the summary supplied for this article.