Mizuho analyst Dan Dolev reiterated a Buy rating on Robinhood Markets, Inc (NASDAQ:HOOD) with a price target of $15.
The analyst estimated that HOOD’s recent implementation of a 3-cent pass-through charge (disclosed in fiscal third quarter 2023 10-Q) per option trading contract could potentially boost 2024 adjusted EBITDA by 5% or more.
The analyst questioned if the consensus reflected the pass-through charge. Evidence suggests it is unlikely.
Since before the Menlo Park, California-based company reported earnings on Nov. 7, adjusted EBITDA estimates for fiscal 2024 have declined from over $660 million to $560 million. ...