Bernstein raised its price target on Robinhood (HOOD) to $160 from $130 on Monday, while maintaining its Outperform rating, and betting that the broker is well positioned to benefit from a generational shift in how retail investors trade.
The new target rests on a thesis that broker-dealers, incumbent exchanges, prediction platforms, and crypto-native venues will spend the next two years fighting over a fee pool worth more than $70 billion across prediction markets, perpetual futures, tokenized equities, and emerging compute-linked contracts, analysts led by Gautam Chhugani wrote in a note shared with The Block.
Prediction markets set to overtake crypto
The clearest near-term catalyst analysts cited is prediction markets, now large enough to rival crypto as a revenue line.
Bernstein expects Robinhood to grow prediction market revenue at a 64% compound annual rate through 2028, reaching $1.7 billion.
