Robinhood shares fell despite Morgan Stanley raising its target price to $124

Morgan Stanley and Barclays raised Robinhood price targets, but share prices remain under pressure

Morgan Stanley and Barclays raised Robinhood price targets to US$124 and US$122 respectively, although the stock has fallen more than 5%, approaching key support levels around US$109.

Summary of Points

Morgan Stanley raised its Robinhood target price to $124, while Barclays raised it to $122. The stock fell back more than 5% after being blocked near $120, testing $109 support. Robinhood Chain\'s growth and strong trading activity continue to support analysts \'bullish expectations.

Morgan Stanley reiterated its buy rating on Robinhood on July 10 and raised its target price from US$95 to US$124, an increase of more than 30%. The new price target is above the stock\'s recent high of around $120, which means there is still room for further gains from current levels.

Barclays analyst Benjamin Budish also maintained his buy recommendation for Robinhood and raised its target price from $82 to $122. Barclays believes that as Robinhood continues to expand beyond its retail brokerage business, its trading activity and platform momentum remain strong.

The two previous increases followed higher price targets from Goldman Sachs, Mizuho and BTIG, which gave a 12-month forecast range of $121 to $130. Taken together, these views suggest that many Wall Street institutions expect Robinhood\'s recent product growth to support further upside, although Friday\'s stock price movement suggests investors are still leaning towards profit-taking.

Analyst price target maintains bullish logic

Before the correction, Robinhood\'s share price had risen nearly 40% in the past month and about 80% in the past few months. The stock closed Thursday at $115.11, up 1.39%, but volume remained below the average of about 32 million shares. Pre-market trading at one point pushed the stock up more than 3%, pointing to the opening price above $118.50. However, after regular trading began, data showed the stock fell to about $110.17, or 4.29%, after briefly trading around the $118 to $119 range.

The intraday chart showed that the stock price fell below US$115 shortly after the opening, and then briefly rebounded to around US$113. The seller then regained control and pushed the stock back to near $110, making news that analysts raised their price target failed to prevent an immediate sell-off.

Robinhood\'s recent rise has also been accompanied by many developments in the company. The company launched Robinhood Chain, a Layer-2 network focusing on real-world assets, decentralized finance and memecoin, and also announced a partnership related to Trump\'s account. It is worth noting that Robinhood Chain surpassed Hyperliquid in 24-hour decentralized exchange trading volume and locked positions with a total value of US$100 million within a few days. CEO Vlad Tenev\'s comments about waiving Gas fees and memin activities further sparked interest in the network.

HOOD tests support after $120 is blocked

Daily charts from TradingView showed HOOD trading around $109.08, down 5.24%, as the stock failed to hold on to its recent rally towards $120.03. The same chart shows that shares are testing the 78.6% Fibonacci retracement level of $109.33, making the $109 to $110 area an important support range. If this support level falls, the next retracement levels are US$100.93, US$95.03 and US$89.13 respectively. On the upside side, the recent high of US$120.03 remains the main resistance area and a level that HOOD needs to break through before it can try to break through again.

The momentum indicators on the chart are mixed and not completely bearish. The daily RSI is near 58, below recent highs but still above neutral levels; the MACD is still above the zero-axis, but the histogram momentum is weakening. Based on the chart structure, the stock\'s upward trend from its May low near $70 remains intact unless the current decline breaks multiple support levels. Wall Street\'s higher price targets continue to support long-term growth prospects, but Friday\'s reversal suggests HOOD may need to stabilize near $109 before buyers try again to hit $120.