BofA Boosts Price Targets for Robinhood and Coinbase

Bank of America (BofA) has raised its price targets for two major financial technology companies, signaling confidence in their future performance. The firm increased Robinhood's target from $140 to $156, maintaining a 'Buy' rating, while Coinbase's target was lifted from $174 to $203. Despite Robinhood's stock falling over 20% in the past year, it gained approximately 1% in morning trading following the target increase, reflecting a shift towards positive investor sentiment.

Robinhood is expected to report Q3 earnings of $0.64 per share on revenue of $1.4 billion. The company has not missed earnings per share (EPS) estimates in the last 11 quarters, underscoring its stability and attractiveness in the market. Additionally, Robinhood plans to launch weekend trading early next year, potentially increasing trading hours by 40% to a total of 168 hours per week.

In contrast, eToro's price target was cut to $39 with a 'Neutral' rating, reflecting relative weakness in the market. Its stock fell about 1.1% in morning trading. Robinhood's equities revenue nearly doubled to $129 million in Q2, accounting for 17% of transaction-based revenue, indicating increased customer trading volume and engagement. The company also plans to introduce perpetual futures and earnings contracts, with low initial fees, which could provide new revenue streams.

Looking ahead, Robinhood launched Robinhood Chain, a blockchain specifically designed for financial assets, marking its transition from traditional stock trading to digital assets. By the second quarter of 2026, Robinhood had 28.4 million funded customers and $369 billion in platform assets, providing a robust support system for promoting its new products and potentially accelerating the market acceptance of tokenized assets.