Bernstein rates Robinhood Markets outperform, expecting prediction markets and newer products to likely drive its next leg of growth. The stock is down more than 16% in 2026 and slipped another 7% premarket after the company's third-quarter report.
Bernstein rates Robinhood Markets outperform and expects prediction markets and other newer products to likely drive the next leg of growth. The firm set a $160 price target, which implies about 69% upside from Tuesday's close.
Analyst Gautam Chhugani said in a Wednesday note that the stock over the next 12-18 months will be driven by how fast the platform scales new products as U.S. regulation and market structure move rapidly.
Robinhood's third-quarter prediction market revenue increased six-fold year over year, according to Bernstein. Chhugani added that revenue from non-sports contracts rose 30%. He also noted that Rothera, a derivatives exchange and clearinghouse, became Robinhood's 14th business to cross $100 million in annualized revenue.
Chhugani also pointed to the crypto business. According to Bernstein's note: "The crypto business is evolving from crypto native retail-trading to an infrastructure business" he wrote. He cited $100Bn in on-chain exchange volumes since HOOD chain launched, along with about 200 live equity tokens.
Of the 33 analysts covering Robinhood Markets, 27 have a buy or strong buy rating, while five have a hold, LSEG data shows.
Source: CNBC
Trading involves risk.
Risk Disclaimer
