BofA Raises Price Targets for Robinhood and Coinbase Ahead of Earnings

Bank of America (BofA) raised its price targets for Robinhood (HOOD) and Coinbase (COIN) ahead of their third-quarter earnings reports, while cutting its target for eToro (ETOR). BofA increased Robinhood's target to $156 from $140 and Coinbase's to $203 from $174, maintaining ‘Buy’ ratings on both. Meanwhile, eToro's target was lowered to $39 from $46, with a ‘Neutral’ rating retained. The adjustments come as part of BofA's estimates reshuffling ahead of the earnings season.

Robinhood's stock gained around 1% in morning trade, with retail sentiment trending ‘bullish’ on Stocktwits. The company has not missed earnings per share (EPS) estimates in its last 11 quarters, and is expected to report a profit of $0.64 per share on revenue of $1.4 billion for Q3. Despite this strong track record, HOOD stock is down more than 20% over the past year. The average analyst price target stands at $132.79, implying nearly 17% upside from current levels.

Coinbase's stock jumped as much as 2.8% in early trading, but sentiment remained ‘bearish’ on Stocktwits. The exchange is expected to report a Q3 loss of $0.20 per share on revenue of $1.77 billion. Coinbase has missed earnings estimates in each of the past three quarters, putting pressure on the company to reverse the trend in its upcoming report. COIN stock has fallen nearly 50% over the past year, alongside the drop in Bitcoin's (BTC) price, which was trading at around $85,500 at the time of writing.

eToro's stock fell around 1.1% in morning trade, with retail sentiment trending ‘bearish.’ The company is expected to report Q3 EPS of $0.40 on revenue of $203 million. eToro has beaten earnings estimates three times and missed them three times since going public. ETOR stock is down nearly 40% over the past year, trading near $26, compared with the average analyst price target of $47.60, which implies nearly 85% upside from current levels.