Robinhood (HOOD) Stock: Mizuho Sees More Upside as Day Trading Rules Loosen
Mizuho raised its price target on Robinhood to $115, citing the SEC's decision to eliminate the $25,000 Pattern Day Trader rule. The change is expected to boost Robinhood's revenue by 1-2% in FY2027.
Mizuho has raised its price target on Robinhood (HOOD) to $115 from $105, maintaining an Outperform rating. The change follows the SEC's decision to scrap the $25,000 minimum balance requirement for Pattern Day Traders, allowing brokers to set their own intraday margin requirements. A survey of 160 traders found over 80% said the old rule limited their activity. Mizuho estimates 25% of Robinhood's funded accounts are affected, potentially adding 1-2% to FY2027 sales. Robinhood's average account balance is around $12,000. The company has been expanding its business beyond retail trading, with growth in its Gold membership ecosystem and margin lending.
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