Jefferies initiates Robinhood with 'buy' rating, sees leverage in revenue diversification

Jefferies initiates coverage of retail trading platform Robinhood HOOD.O with a "buy" rating and $88 price target, a upside of 21.3% to the stock's last close

Brokerage says HOOD is levered to rising global retail participation and its rapidly evolving product set is driving increased revenue diversity and client retention

Adds, HOOD’s unique ability to attract the next-gen investor positions it as one of the primary beneficiaries of the ongoing ~$100T generational wealth transfer

HOOD's aggressive product roll out has distinguished it vs peers and allowed it to accelerate its diversification of revenues, brokerage says

Separately, HOOD on late Tuesday announced it approved a new $1.5 billion share repurchase program

23 of 27 analysts rate stock "strong buy" or "buy", three "hold" and one "sell"; their median PT is $121- data compiled by LSEG

As of last close, stock down 35% YTD