- Bernstein analysts cited the app’s explosive growth in crypto-driven revenue.
- Three main categories will drive growth: new tokens, staking, and stablecoins.
- Morgan Stanley has indicated the same drivers but a $90 price target.
Analysts are bullish on Robinhood.
Bernstein analysts doubled their price target for the company’s stock to $105 by the end of 2026 — up from $51.
Morgan Stanley analysts raised their price target to $90 — a 40% hike from their previous prediction.
Robinhood will grow thanks to three main categories, according to both teams of analysts: new token offerings — 20 to 30 tokens from DeFi, AI, and memecoins — staking services, and stablecoins.
The analysts also see institutions entering crypto through Robinhood integrations with crypto-native platforms.
“Robinhood is building a global financial ecosystem across asset-classes — equities, crypto, tokenized securities, stablecoins, prediction markets," Bernstein analyst Gautam Chhugani wrote in a note to investors on Wednesday.
The optimistic outlook hinges mostly on Trump’s promises. His pro-crypto campaign slogans “attracted more traders to chase crypto price action,” said Bernstein analysts.
When the president made crypto a centrepiece of his campaign, Bitcoin surged — peaking at $108,000.
Robinhood notched explosive growth in its cryptocurrency arm in the last quarter of 2024.
Crypto trading now accounts for 53% of Robinhood’s transaction revenue, up from 20% in the previous quarter.
The company also posted $1 billion in quarterly sales in 2024’s final quarter, and crypto trading revenue surged nearly sixfold in the same period.
Trump trade
Both teams of analysts expect Robinhood to continue benefiting from Donald Trump’s new administration.
A more positive US regulatory regime will allow Robinhood to “participate more aggressively,” unlocking more crypto revenue in the process, wrote Morgan Stanley market watchers.
According to Robinhood co-founder and CEO Vlad Tenev, his company’s efforts to support additional crypto tokens will accelerate if the Trump administration delivers on its vow for clearer crypto rules.
Some pundits like Arthur Hayes are underwhelmed by the first moves made by Trump.
Bitcoin price to $200,000?
Bernstein analysts haven’t held back on their bullish prediction for Bitcoin either.
The firm’s analysts have touted a $200,000 price tag by the end of year.
Others are even more bullish.
BlackRock’s Larry Fink has put a $700,000 price target on the crypto, while Standard Chartered analysts see $500,000 per coin.
Pedro Solimano is a markets correspondent based in Buenos Aires. Got a tip? Email him at psolimano@dlnews.com.