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Investing.com — Mizuho analyst Dan Dolev said that after a difficult start to life as a public company, Robinhood Markets Inc (NASDAQ:HOOD) has “turned the corner.”
Despite lowering the firm’s price target on Robinhood shares to $19 from $20, the analyst titled his research note “Three Signs That Robinhood May Have Bottomed.”
Those signs included Robinhood’s monthly active users possibly bottoming in the fourth quarter, the fact that resurrected/churned accounts are moving in the right direction, and average revenue per user is stabilizing. The company’s accounts are showing no structural disadvantage compared to peers, he said.
Dolev reiterated a buy rating and explained that “monthly active users increased 6mn in 1Q and 3.6mn in 2Q, then declined by 2.4mn in 3Q.
“However, it appears that the rate of decline in MAUs is beginning to abate. As evidence, the incremental decline in 4Q was less severe than that of the prior quarter, with MAUs declining just 1.6mn Q/Q.”
Robinhood shares are up 1.48% Tuesday.
