Wall Street analysts were impressed with Robinhood after it posted good results for its latest quarter that showed a boost from falling interest rates and costs. On Wednesday, the investment app operator reported a narrower-than-expected loss of 20 cents per share for the third quarter. According to Refinitiv, this is better than the 31% loss per share that Wall Street forecast. Net revenue came in at $361 million, compared with the $355 million analysts expected. Analysts welcomed the results and highlighted the company’s new products and revenue streams. However, the growth opportunity from here is the company’s next big hurdle, and Street is confused about how to value Robinhood given its difficulties. The stock is now down 29% for the year. Growth for Robinhood has reversed as the retail business boom loses steam and investors await the volatile market of 2022. In August, the fintech company announced a 23% drop in volume. employees when reporting weaker-than-expected results for the second quarter . Here’s What Analysts Had To Say About Robinhood: Key Bank – Overweight, $13 Target Price “Although we don’t expect the journey to be linear… after the user base grows 17x over the last 4 years, we believe Robinhood is poised to be the leading FinApp in part because of: 1) strong engagement estimated at >40% DAU:MAU; 2) rapid adoption new products such as Cash Management, scaling in ~2 years to 5 million or more users; and 3) strong innovation track record (e.g., self-clearing, microservices architecture) support support path to ~$2 billion in revenue with ARPU of ~$90 as MAU approaches mid-20M in 2022.” JMP Securities – Outbeat, $28 target “We’re pleased with the results The results and actions the company continues to take to improve its position and shift towards criminal behavior and accordingly, we consider the risk/reward as attractive only ~1.8x With the year 2023E our turnover hu, with feedstock increasing as growth improves. “Goldman Sachs – Neutral, $13 Target “While we believe improving profitability is a very good step forward, we believe investors need to take a longer look at the organic growth for the stock to outperform materially. That said, with the company’s cash position and tangible book value likely bottoming out, we see solid valuation support and limited downside at current levels. “Morgan Stanley – Equilibrium weight, $12 price target” Q3 earnings volatility should enhance investor confidence in management strategy and signal a potential shift in sentiment among investors. Investors consider loss as an important investment barrier. However, growth challenges and user engagement remain for unfavorable macro.” Deutsche Bank – Hold, $11 price target “Pretty aggressive, company has achieved EBITDA profit adjusted a quarter ahead of target… This shows that the sustainability and growth of adjusted EBITDA is the next hurdle, which we think will take time as the company builds initiatives expected growth (potentially restarting cost growth). Key factors will be increasing customer usage, driving continued net profit revenue growth, maintaining transaction revenue above Q3 levels, and demonstrating measurable traction over a period of time. long list of growth initiatives. ” Piper Sandler – Neutral, $11.50 price target “The multi-fold increase in our price target is driven by our belief in HOOD’s leaner cost model and by the fact that it achieves adjusted EBITDA earnings a quarter earlier than expected. We reiterate the Neutral rating, as we would like to see a change in MAU growth, a more convincing increase in trading volume and/or a successful new product introduction (which should boost the valuation) to become more bullish on HOOD, although we acknowledge progress has been made. “Barclays – Underweight, $11 Target Price” Increased Q3 revenue, driven by higher net interest income and much lower-than-expected expenses, resulting in adjusted EBITDA of $47 million (and carryover). positive earlier than expected). That said, trading revenue has slipped, and MAUs have fallen in September.” – Michael Bloom of CNBC Contributing Report.