Celebrations may be in order for Robinhood Markets, Inc. (NASDAQ:HOOD) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The consensus statutory numbers for both revenue and earnings per share (EPS) increased, with their view clearly much more bullish on the company's business prospects. Investors have been pretty optimistic on Robinhood Markets too, with the stock up 16% to US$65.28 over the past week. Could this upgrade be enough to drive the stock even higher?

Following the upgrade, the current consensus from Robinhood Markets' 13 analysts is for revenues of US$3.7b in 2025 which - if met - would reflect a huge 26% increase on its sales over the past 12 months. Statutory earnings per share are supposed to decline 14% to US$1.37 in the same period. Prior to this update, the analysts had been forecasting revenues of US$3.3b and earnings per share (EPS) of US$1.07 in 2025. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.

View our latest analysis for Robinhood Markets

With these upgrades, we're not surprised to see that the analysts have lifted their price target 28% to US$64.71 per share.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting Robinhood Markets' growth to accelerate, with the forecast 26% annualised growth to the end of 2025 ranking favourably alongside historical growth of 20% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 5.7% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Robinhood Markets to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for this year. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. Given that the consensus looks almost universally bullish, with a substantial increase to forecasts and a higher price target, Robinhood Markets could be worth investigating further.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have estimates - from multiple Robinhood Markets analysts - going out to 2027, and you can see them free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies backed by insiders.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.