Robinhood stock climbs higher on Deutsche Bank upgrade

Shares of Robinhood (HOOD) are climbing after Deutsche Bank upgraded the trading platform's stock from Hold to Buy, citing its focus on cost controls. Catalysts Hosts Seana Smith and Madison Mills report more on the bullish call and dig into Robinhood's fundamentals.

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This post was written by Melanie Riehl

Video Transcript

Deutsche Bank upgraded the stock to buy from hold to the bank.

Appraising Robin Hood's focused on cost control, noting that the company has cut adjusted expenses by nearly 25%.

We're looking at gains here on the back of that bullish call of just about 6% right now that they argue for the fact that they see upside here for the or they argue that it looks like when among the best of the E brokers here over both the new and longer term.

They also went on to say that Robin Hood joining Charles Schwab is a buy here for them in terms of ratings.

They see more of a 20% upside potential for the stock.

That's when you take into account the price target and where the stock closed in trading yesterday.

So again, they like how they are positioned.

I think this is also probably a valuation call given how Robin Hood has been trading.

But again, you're looking at gains just about 6% today.

Ma Yeah, it's interesting that they specifically cite some of the company fundamentals for Robin Hood expansion into some additional financial services efforts and just to run through a couple of these initiatives, they talk about the company's 24 hour stock trading initiative, an expansion of retirement account options with matching contributions.

They're also looking to expand internationally, uh specifically offering a crypto trading service in Europe.

We also know that they recently purchased and A I platform and through that purchase, they were able to bring on the executive with that company that they were working with called Pluto and that could be a move to expand into a I powered trading, which is certainly something that Robin Hood is positioned to capitalize off of given how ahead of the curve they really been in terms of adding fintech and digital assets to their own platform for consumers.