Key Highlights
- Bernstein upgraded Robinhood (HOOD) price target to $160 from $130 while keeping an Outperform rating
- Shares rebounded to $102.25 during pre-market hours following a $99.96 close on July 17
- Analysts project prediction markets will emerge as the fastest-growing division, reaching $1.7B in revenue by 2028
- The company’s Robinhood Chain, built on Arbitrum layer-2 technology, sets stage for tokenized asset expansion
- Second quarter results scheduled for July 29, with analysts projecting $1.27B in quarterly revenue
Investment firm Bernstein elevated its price forecast for Robinhood Markets (HOOD) to $160 from a previous $130 target on Monday, identifying tokenized securities and prediction markets as pivotal catalysts for future expansion.
Shares were changing hands near $102.25 during early trading hours following the previous session’s close at $99.96 on July 17, marking an approximate 2.29% pre-market increase. The updated $160 projection implies more than 60% potential upside from Friday’s trading levels.
Gautam Chhugani, the analyst behind the upgrade, maintained his Outperform stance while highlighting emerging business verticals as catalysts for enhanced revenue and profitability extending through 2028.
The analyst’s model anticipates a 32% compound annual revenue growth rate spanning 2026 through 2028, accompanied by 47% EBITDA expansion and a 49% CAGR for earnings per share. His $160 valuation relies on a 35x forward earnings multiple applied to a projected 2028 EPS of $4.56.
Among business segments, prediction markets are anticipated to deliver the most aggressive expansion, with Chhugani’s model showing $1.7 billion in annual revenue by 2028 ā representing a 64% compound annual growth trajectory. This acceleration stems partly from Robinhood’s Rothera exchange, a collaborative venture with Susquehanna International Group that evolved from the LedgerX acquisition completed in December 2025.
Rothera introduced event contracts during May 2026 and presently represents 16% of all event contract activity on the platform. The company simultaneously offers Kalshi contracts to its customer base, establishing dual exposure across prediction market infrastructure.
Tokenized Assets Positioned for Extended Growth
The Bernstein research team highlighted tokenized securities as a substantial long-term revenue opportunity, specifically noting Robinhood Chain ā the firm’s custom Arbitrum-powered layer-2 blockchain ā as foundational infrastructure for tokenized real-world assets.
Analyst projections indicate on-chain real-world asset valuations will expand from approximately $35 billion currently to a range between $2 trillion and $4 trillion by decade’s end. Tokenized equity securities are forecast to capture growing market share as adoption extends beyond Treasury instruments and private credit products.
The tokenization ecosystem continues attracting institutional participants. Alpaca and Broadridge Financial Solutions revealed Monday they have incorporated shareholder governance capabilities into Alpaca’s Instant Tokenization Network. In a separate development, Securitize partnered with Cantor Fitzgerald last week to build infrastructure supporting blockchain-enabled initial public offerings.
Second Quarter Results Due July 29
Bernstein indicated second quarter performance should align with Street expectations, as prediction market income compensates for subdued cryptocurrency trading volumes.
Digital asset markets have demonstrated weakness, with Bitcoin trading near $64,600 and struggling to break through the $65,000 level for more than four weeks.
The company will release Q2 financial results on July 29. Consensus estimates from Wall Street analysts call for $1.27 billion in quarterly revenue.
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