Robinhood’s recovery may not be in the cards any time soon, according to Atlantic Equities. Analyst John Haggerty undervalued the online brokerage on Wednesday, saying that a drop in user engagement — coupled with falling trading volume, potential regulation around the pay to order flow business model and declining cryptocurrency valuations — put even more pressure on the stock. Will put “With pre-pandemic behavioral trends of customers and a possible slowdown ahead, user engagement is likely to decline further,” Haggerty said. “Furthermore, the fall in equity markets is a proposition for generally lower retail trading volume and the regulatory threat to PFOF revenue is substantial.” “Ultimately, a decline in crypto valuation will have a direct impact on both volume and order value. As a result of our analysis we have reduced our revenue by 10% in 2022 and 25% in 2023,” the analyst said. Shares of Robinhood have fallen more than 59% this year, far more than the Nasdaq Composite and the S&P 500 — which are down 30.8% and 21.6%, respectively. At the end of April, the company reported first-quarter results that were well below analysts’ expectations, with monthly active users down from 17.7 million in the year-ago period to 15.9 million. The company cut about 9% of its workforce, citing “duplicate roles and job functions” for the layoffs. Atlantic Equities has a price target of $5 per share on Robinhood, down 30% from Tuesday’s close of $7.23. “Overall, the threats to Robinhood’s revenue are substantial and the increased likelihood of a recession will continue to apply pressure to revenue through declining valuations and declining volumes,” Haggerty said.