Robinhood could have more room to run as its crypto business gains momentum, according to Deutsche Bank, which raised its price target on the stock to $136 from $115 while maintaining a buy rating.
The bank raised its earnings estimates after Robinhood Chain’s fees revenue accelerated far beyond its previous expectations. Analyst Brian Bedell said the recent performance is “significantly ahead” of prior forecasts, though he cautioned that it remains unclear whether the current pace can be sustained.
Robinhood shares jumped more than 16% to close Thursday’s session, while Deutsche Bank’s new price target suggests about 9% further upside. The stock declined 2% in premarket trading today.
The Chain public mainnet launched just over two months ago as a blockchain for crypto trading, allowing Robinhood to generate fees from transactions conducted on the network.
The chain’s revenue has grown sharply over the past two months, increasing from about $200,000 a day through mid-August to nearly $1 million by the end of August, based on DeFiLlama data cited by Deutsche Bank.
