11:25 AM EDT, 05/17/2024 (MT Newswires) -- (Updates with the analyst's commentary).

BofA Securities upgraded Robinhood Markets ( HOOD ) to buy from underperform, pointing out that it now sees the current opportunity differently compared to 2021 when they initiated coverage with an underperform rating after the company's initial public offering.

This change is due to several factors: increasing retail engagement and faster organic growth, positive operating leverage after large expense reductions, and appealing valuation driven by improvements in EBITDA/EPS, analysts Craig Siegenthaler wrote in a Friday note.

The analyst also raised Robinhood's price target to $24 from $14.

Robinhood's stock was up 12.5% in recent trading.

The company has an average hold rating and a price target range of $12.50 to $30, according to analysts polled by Capital IQ.

(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)

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