Robinhood Markets (HOOD) shares rose on Wednesday. Scotiabank initiated coverage on the company with a "Sector Outperform" rating. The firm set a $136 price target. The stock traded up nearly 2%, closing at $106.58.
Scotiabank bases its bullish stance on the market's undervaluation of Robinhood's diversified revenue streams and growth in areas beyond simple equity trading.
Other recent analyst actions amplified this positive sentiment. Piper Sandler increased its price target to $145 on the same day. Morgan Stanley upgraded the stock to "Overweight" a day prior.