Robinhood Markets' introduction of tokenized stock trading and other crypto offerings at a Monday event spurred a series of Wall Street price target hikes reported on Tuesday, including a massive 83% boost from KeyBanc. HOOD rose modestly, after surging to an all-time high to start the week.
In a research report distilled by investment news site The Fly, KeyBanc took note of Robinhood's increased product breadth/depth and velocity in rolling out innovative new features that contribute to an expanded market opportunity.
Robinhood Tokenized Stocks
Robinhood's launch of tokenized stocks is initially just for customers in the European Union. In an explainer, the commission-free trading platform said that the Robinhood Stock Tokens are blockchain-based derivatives, "giving you exposure to the U.S. market."
"You can buy, sell, or hold stock tokens — but you cannot send them to other wallets or platforms at this time."
Robinhood said that the transactions are done in U.S. dollars. "When you place a trade, we automatically convert your euros" — plus a 0.1% FX fee that "covers everything."
The market for stock tokens is open 24 hours, Monday to Friday.
Reuters reported that customers will be able to buy more than 200 U.S. stocks and exchange-traded funds, including Nvidia and Apple. It also plans to offer tokens for trading stocks of privately-held companies, starting with OpenAI and SpaceX.
HOOD
KeyBanc hiked its target on HOOD shares to 110 from 60, keeping an overweight rating. Deutsche Bank raised its HOOD price target to 96 from 85, keeping a buy rating.
HOOD rose 1.6% to 95.15 in Tuesday morning stock market action. On Monday, Robinhood surged 12.8%.
Robinhood broke out from a 66.91 cup-base buy point on June 3 and is well out of range at the moment.
Be sure to read IBD's The Big Picture column after each trading day to get the latest on the prevailing stock market trend and what it means for your trading decisions.
