Many people know Robinhood Markets (HOOD) as a trading app for young investors. But Evercore ISI thinks that’s not all the business has to offer. In fact, the firm feels the business is undervalued on Wall Street.
On Monday, Oct. 12, Evercore ISI analyst Adam Frisch started coverage of Robinhood with an Outperform rating, meaning that he recommends buying the stock.
He also set a price target of $130, CNBC reported. Frisch recommends the company because he believes Robinhood is becoming a broader money platform that attracts older, wealthier customers through offers such as its 3% match on retirement accounts.
However, the stock is down about 5% so far in 2026, mostly because crypto trading has slowed.
The company earns money mainly from its users’ options, stocks, and crypto trades. It also collects interest on margin loans and charges a $5 monthly fee for its Robinhood Gold membership.
Why Evercore sees Robinhood as more than a trading app
Frisch believes Robinhood has built a “flywheel” — a model where every part of the business makes the others more useful.
He pointed out that Robinhood has already grown 13 separate product lines that generate more than $100 million in annual revenue, Traders Union reported. That is unusual for a business many people still see as just a trading app.
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Frisch also thinks Robinhood is minimizing the impact of crypto swings on its business by focusing more on steady subscription income and better pricing.
The company’s newer products, including the Robinhood credit card and the “Robinhood Chain” blockchain, are, in his words, “under-monetized value drivers” that could lift the stock’s value over time, StreetInsider noted.
Frisch is a senior managing director at Evercore ISI with more than 25 years of experience. He also spent 14 years before that as a research analyst at UBS and Morgan Stanley, a solid track record that makes his calls valuable.
How the 3% IRA match pulls in older savers
When you deposit money into a Robinhood Individual Retirement Account (IRA), the company gives you a bonus based on how much you contribute.
Gold members who make a new IRA contribution get a 3% match, while non-Gold users get only a 1% match, Robinhood confirms. However, the IRS sets a contribution limit.
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Robinhood’s Gold membership costs $5 a month, and customers must keep the Gold plan for one year and keep the money with Robinhood for five years to get the full match.
The customers benefiting from the offer are mostly older, wealthier savers.
What this means for everyday investors
Robinhood is now more than just a crypto trading platform. The company offers retirement accounts, Gold memberships, credit cards, and prediction markets, all of which are becoming major parts of the business.
That means some of the volatility the stock previously faced due to crypto trading has decreased.
However, the stock still carries some risk. If retail trading slows down faster than these newer parts of the business can grow, HOOD could stay weak, even with so many analysts recommending the stock.
To see whether the company’s shift from a trading app to a full money platform is working, watch the next earnings report for growth in Robinhood’s deposits and new Gold members.
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