Robinhood (HOOD) Stock: Mizuho Sees More Upside as Day Trading Rules Loosen

TLDR

• Mizuho raised its Robinhood price target from $105 to $115, keeping an Outperform rating
• The SEC eliminated the $25,000 Pattern Day Trader minimum, replacing it with broker-set margin rules
• Over 80% of surveyed traders said the old rule held them back; Robinhood’s average account balance is ~$12,000
• Mizuho estimates ~25% of Robinhood’s funded accounts are affected, adding 1-2% to FY2027 sales
• Wall Street holds a Strong Buy consensus on HOOD with 14 Buy ratings and an average target of $105.19

Robinhood has been building a broader business beyond retail trading. Now a key regulatory shift is giving analysts another reason to upgrade their outlook.

Robinhood Markets, Inc., HOOD

Mizuho raised its price target on Robinhood (HOOD) to $115 from $105 on Sunday, keeping its Outperform rating in place. The stock was trading around $90.75 at the time, giving it a market cap of roughly $81.7 billion.

The move follows the SEC’s decision to scrap the $25,000 minimum balance requirement tied to the Pattern Day Trader rule. Brokers can now set their own intraday margin requirements instead.

To size up the impact, Mizuho ran a survey of around 160 traders with accounts under $25,000. More than 80% said the old rule had been limiting their activity.

Expected trading volume increases came in at around 3%, which is modest but meaningful for a platform like Robinhood, where the average account balance sits at roughly $12,000.

Mizuho estimates about 25% of Robinhood’s funded accounts fall into the affected range. That translates to a 1-2% boost to FY2027 revenue. The firm nudged up its FY2026 revenue and EBITDA estimates by around 1%, and FY2027 estimates by around 2%.

Robinhood posted 52% revenue growth over the last twelve months. The stock currently trades at a P/E of around 44x.

What Other Analysts Are Saying

Not everyone is equally bullish. Truist lowered its price target to $100 but held its Buy rating, pointing to lower transaction-based revenues in February and March. Citizens cut its target to $155, citing softer trading activity and trimming its Q1 2026 EBITDA estimate to $573.1 million, about 10% below consensus.

Piper Sandler and Cantor Fitzgerald both kept Overweight ratings. Bernstein reiterated Outperform, flagging crypto recovery and prediction market revenue as tailwinds. Its 2026 revenue estimate sits 9% above consensus.

Overall, HOOD carries a Strong Buy consensus from Wall Street, based on 14 Buy and 3 Hold ratings. No analyst currently rates it a Sell. The average price target of $105.19 implies about 16% upside from current levels.

Beyond Trading

Robinhood’s Gold membership ecosystem has been growing steadily. Net deposits hit $68 billion last year, and margin lending reached a record $18.4 billion. Its 3% cash-back credit card is part of a broader push into financial services.

The company also moved this week to restrict certain high-risk event contracts on its prediction markets platform, a sign it’s trying to attract more serious capital to that segment.

Bernstein has projected prediction market volume could reach $1 trillion by 2030.

Mizuho also pointed to potential catalysts including expansion into Europe and Asia, along with cross-sell opportunities across its growing product suite.