BofA Raises Price Targets for Robinhood and Coinbase Ahead of Earnings
Bank of America (BofA) has raised its price targets for Robinhood and Coinbase ahead of their third-quarter earnings reports, while lowering its target for eToro. BofA increased Robinhood's target to $156 from $140 and Coinbase's to $203 from $174, both maintaining 'Buy' ratings. Meanwhile, eToro's target was cut to $39 from $46, with a 'Neutral' rating retained.
Robinhood's stock gained around 1% in morning trade, with retail sentiment on Stocktwits trending 'bullish.' Coinbase's stock jumped as much as 2.8%, despite sentiment trending 'bearish.' eToro's stock fell around 1.1%, with sentiment also trending 'bearish.' The changes were part of BofA's estimates reshuffling ahead of the third-quarter earnings season.
Robinhood is expected to report third-quarter earnings of $0.64 per share on revenue of $1.4 billion. The company has not missed earnings estimates in its last 11 quarters, giving investors a long track record of earnings beats. Despite this, 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 is expected to report a third-quarter loss of $0.20 per share on revenue of $1.77 billion. The exchange has missed earnings estimates in each of the past three quarters, putting more focus on whether the company can reverse that trend in its upcoming report. COIN stock is down nearly 50% over the past year alongside the drop in Bitcoin's price. The average analyst target on the shares currently stands at $207.85, implying more than 11% upside from current levels.
eToro is expected to report third-quarter EPS of $0.40 on revenue of $203 million. The company missed earnings estimates in the previous quarter. Since going public, it has beaten earnings estimates three times and missed them three times across six quarterly reports. ETOR stock is down nearly 40% over the past year, trading near $26, compared with the average analyst price target of $47.60.