BofA Securities analysts who upgraded Robinhood Markets Inc (NASDAQ:HOOD) to a Buy in May are anticipating an earnings beat from the online broker in August. 

The Details

BofA Securities released a research note Wednesday touting Robinhood as well-positioned for both near-term and long-term growth. The note highlighted Robinhood's record high trading volumes and more than 40% annualized net new asset (NNA) growth as near-term revenue drivers. 

BofA said Robinhood now has an appropriate expense base after multiple rounds of headcount reductions, and the company has reiterated its commitment to cost-conscious growth with approximately 90% of its costs being fixed.

The research firm expects reduced costs coupled with Robinhood's organic growth and strong free cash flow conversions to create "a powerful earnings growth trajectory going forward."

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