Bernstein raises Robinhood price target to $160
Bernstein Investment Bank raised its target price on Robinhood (ticker HOOD) from $130 to $160. The bank said that investors have ignored a large-scale industry change that may push the trading platform to break through the original business boundaries of stocks and cryptocurrencies and complete business transformation. Analyst Gautam Chuggani wrote in a research report: "It is reasonable for the market to correct slightly after the World Cup ends, but the capital market has most likely ignored that a cross-generational platform pattern change is taking place in the trading industry." Chugugani predicts that in the next two years, securities brokers (Robinhood), national stock exchanges ( ICE, Chicago Mercantile Exchange (CME), prediction trading platforms (Kalshi, Polymarket), and native cryptocurrency trading platforms (Hyperliquid, Binance, Coinbase) will focus on fast-growing tracks such as prediction markets, tokenized stocks, and perpetual contracts to compete for a fee market cake totaling more than 70 billion US dollars. Research report data shows that relying on the self-developed Rothera exchange, Robinhood’s prediction market business revenue will usher in rapid growth, and it is expected that this revenue will reach US$1.7 billion in 2028. Although Robinhood still provides customers with Kalshi's event contract products, the platform is constantly guiding users to migrate to its own system. While Robinhood continues to sell Kalshi's contracts on an agency basis, it is also launching similar event contracts issued by its own Rothera exchange. At the same time, Kalshi is no longer limited to the prediction track and is expanding its presence in other financial markets. Chugugani commented: Robinhood and Kalshi have gradually formed a subtle relationship between enemies and friends.