Shares of Robinhood Markets Inc. pulled back 8.8% in afternoon trading Wednesday, after downbeat analyst commentary following the previous session’s big rally. Analyst Kenneth Worthington at J.P. Morgan reiterated his underweight rating on the trading app and his $11 stock price target, but widened his 2022 adjusted per-share loss estimate to 84 cents from 68 cents, saying research suggests a 25% sequential decline in monthly and daily users. “We lower estimates on lower crypto volumes industrywide, tepid growth in industry options volume data and more limited volume growth at ebrokerage competitors suggesting limited equity volume growth at Robinhood,” Worthington wrote in a note to clients. Meanwhile, Morgan Stanley’s Mike Cyprys started coverage the stock at equal weight, with a $15 stock price target, saying while he “leans bullish” on Robinhood’s long-term potential and opportunity, he doesn’t recommend buying given “near-term challenges and lack of visibility.” The analyst comments come after the stock rocketed 24.2% on Tuesday to a 2 1/2-month high, after the company said it was extending its trading hours. The stock has tumbled 18.3% year to date, while the S&P 500 has slipped 3.6%.
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