Key highlights:
- Bernstein raised its Robinhood (NASDAQ: HOOD) price target from $130 to $160, while maintaining an Outperform rating
- The brokerage expects Robinhood’s prediction markets business to generate $1.7 billion in annual revenue by 2028, growing at a 64% compound annual growth rate (CAGR)
- Analysts believe tokenized equities, perpetual futures, and Robinhood’s blockchain initiatives could become major long-term revenue drivers
Bernstein has significantly raised its price target on Robinhood stock. The wealth management firm argues that the online brokerage is evolving into a diversified digital financial platform whose next phase of growth will be driven by prediction markets, tokenized assets, and blockchain infrastructure.
The research firm increased its 12-month price target on Robinhood stock to $160 from $130, while reiterating its Outperform rating. The upgrade comes as investors increasingly view Robinhood as one of the biggest beneficiaries of the convergence between traditional finance and digital assets.
Chhugani’s price target of $160 implies a potential surge of over 60% from Friday’s month-low of just under $100.
Prediction markets become a major growth engine
According to Bernstein analyst Gautam Chhugani, prediction markets could become one of Robinhood’s fastest-growing businesses over the next several years.
The firm projects the segment will expand at a 64% compound annual growth rate, reaching approximately $1.7 billion in annual revenue by 2028. If achieved, prediction markets alone would represent a business larger than Robinhood’s total annual revenue just a few years ago.
Bernstein expects Robinhood’s expanding product lineup—including prediction markets, perpetual futures, and tokenized securities—to meaningfully diversify the company’s revenue away from its traditional brokerage business.
The analysts estimate that these new asset classes could account for 18% of Robinhood’s total revenue in 2027, rising to 23% by 2028.
Tokenization strategy gains momentum
A key reason behind Bernstein’s bullish outlook is Robinhood’s growing push into blockchain-based financial infrastructure.
The brokerage has accelerated its efforts in tokenized equities, allowing investors to gain exposure to traditional financial assets through blockchain technology. Combined with its investments in crypto trading, perpetual futures and its broader digital asset ecosystem, analysts believe Robinhood is positioning itself at the center of the next generation of financial markets.
Bernstein also highlighted Robinhood’s blockchain initiatives, including its Rothera platform, as important infrastructure that could support future growth across tokenized finance and decentralized capital markets.
Investors bet on Robinhood’s expanding ecosystem
Robinhood has increasingly broadened its business beyond commission-free stock trading.
The company has expanded into cryptocurrency trading, retirement products, wealth management, derivatives and institutional services, while continuing to attract younger investors interested in digital assets.
Bernstein believes these initiatives provide Robinhood with multiple long-term growth avenues at a time when financial markets are increasingly embracing tokenization and alternative trading products.
The latest upgrade also reflects growing Wall Street optimism that blockchain-based financial services could become a meaningful contributor to Robinhood’s earnings over the coming years.
With prediction markets, tokenized equities and crypto infrastructure gaining traction simultaneously, Bernstein sees Robinhood emerging as one of the leading publicly traded platforms bridging traditional finance and the digital asset economy.
Source:: Robinhood Stock Gets Major Boost as Bernstein Predicts $1.7B Revenue From Prediction Markets