Robinhood Markets ( NASDAQ:HOOD ) shares climbed 4.04% to $47.94 as of 11:32 AM ET on Friday after Morgan Stanley Research named the stock its top pick, citing multiple growth opportunities not yet reflected in its valuation. Analyst Michael Cyprys pointed to Robinhood's potential expansion in the crypto space, saying the incoming Trump administration could drive deregulation that benefits the retail trading platform.

There's also scope for sustained retail engagement as capital markets activity builds, Cyprys noted, suggesting upward earnings revisions could follow. The bullish sentiment follows Bernstein analyst Gautam Chhugani's call on Tuesday, naming Robinhood the best digital assets idea for 2025 within his global coverage. Chhugani also highlighted regulatory tailwinds under a Trump presidency that could boost Robinhood's crypto business, which has faced limitations under current rules.

With momentum building from Wall Street endorsements and potential policy shifts, Robinhood is positioning itself for a strong year ahead.

This article first appeared on GuruFocus .