Morgan Stanley Upgrades Robinhood, Lifts Target to $150
Robinhood is broadening its business beyond retail stock and cryptocurrency trading into prediction markets and a wider range of financial products. Morgan Stanley sees that expansion strengthening the brokerage’s ecosystem, increasing customer engagement and diversifying revenue. The strategy matters because it could reduce Robinhood’s dependence on volatile crypto activity while giving the company more ways to benefit from elevated trading demand.
Morgan Stanley upgraded Robinhood to Overweight in its latest report and raised its price target to $150. The bank said growth in event contracts, continued trading activity and the rollout of additional financial products could support more than 40% upside in the shares. It added that the investment case remains attractive even when volatility in Robinhood’s cryptocurrency business is excluded.
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The history behind this eventBernstein Lifts Robinhood Target to $160 as Prediction Markets Surge
Robinhood has been expanding beyond its core stock and cryptocurrency trading businesses, with prediction markets emerging as a potential new growth engine. The contracts allow users to trade on the outcomes of political, economic and other events. A sustained expansion could diversify the online brokerage’s revenue base and reduce its exposure to the sharp swings that often drive crypto-related transaction income.
Bernstein raised its price target on Robinhood to $160, citing what it expects to be explosive growth in the company’s prediction-markets business. The investment bank forecasts revenue from the segment will reach $150 million in the second quarter of 2026. That would mark the first quarter in Robinhood’s history in which prediction-market revenue exceeds revenue generated by its cryptocurrency business.
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