LONDON (ShareCast) - (Sharecast News) - Goldman Sachs downgraded Robinhood Markets on Friday to 'sell' from 'neutral' and cut the price target to $13 from $15, sending shares of the online trading platform tumbling.
GS said softening retail engagement levels, particularly among low-end consumers, weakness in account growth and a "limited path to near-term profitability" will limit the stock's outperformance over the next 12 months.

The bank said that in the near term, intra quarter app download data suggests the company's user growth has remained depressed. Analyst Will Nance said an acceleration in user growth was key to the shares re-rating higher.

He also said analyst estimates remain too high and Robinhood has a high bar to reach profitability next year.

At 1550 BST, the shares were down 7% at $11.21.

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