Why HOOD Is Climbing Today

Robinhood (HOOD) is advancing 4% today after KeyBanc increased its price target on the shares to $57 from $50. The bank conducted a survey of the firm’s customers.

Why KeyBanc Increased Its Price Target on HOOD

The survey results suggested that the number of those looking for more information on the company’s Gold subscriber offering has increased, while there is significant demand for its Gold Card. Additionally, the number of those showing interest in trading futures on the platform, a program that is set to begin later this year, also rose.

Finally, many of HOOD’s customers want to explore the possibility of retaining an investment advisor, KeyBanc reported. In November, HOOD acquired a company, TradePMR, that links financial advisors to investors.

KeyBanc kept an Overweight rating on HOOD.

Morgan Stanley Was Very Bullish on HOOD Earlier This Month

On Jan. 17, Morgan Stanley identified HOOD as a top pick, citing what it sees as the company’s ability to benefit more broadly from its crypto operations as the Trump administration deregulates the latter sector.

The bank added that analysts’ estimates for HOOD can rise as retail traders become more active going forward.

The Recent Price Action of HOOD

In the last month, the shares have climbed 33%, while they have soared 125% in the last three months.

While we acknowledge the potential of HOOD, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than HOOD but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ ALSO 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock

Disclosure: None. This article is originally published at Insider Monkey.