Robinhood Markets received a price target increase to $160 from Bernstein on Monday, as the analyst firm cited the brokerage's expansion into prediction markets, tokenized equities, perpetual futures, and AI-powered trading. Bernstein analyst Gautam Chhugani raised the 12-month target from $130 while maintaining an Outperform rating, stating the company is moving beyond traditional stocks and crypto into faster-growing trading products. The upgrade reflects Bernstein's view that prediction markets, perpetual futures, tokenized equities, and compute-linked contracts represent future growth drivers within a fee pool the firm estimates at more than $70 billion.
Bernstein Raises Robinhood Price Target to $160
Robinhood Markets traded at $100.49 during Monday's session, moving between an intraday low of $98.61 and a high of $102.60. HOOD stock was up 0.53% during the session after gaining more than 2% in premarket trading.
Bernstein raised its 12-month price target on Robinhood to $160 from $130 and kept an Outperform rating. The revised target uses a 2028 earnings-per-share estimate of $4.56, which Bernstein said is above consensus. The firm kept a 35-times forward earnings multiple, supported by expected revenue and earnings growth through 2028.
Bernstein pointed to prediction markets, perpetual futures, tokenized equities, and compute-linked contracts as future growth drivers. The firm estimates these areas could form part of a fee pool worth more than $70 billion.
Prediction Markets Process 3.5 Billion Contracts Since Late May
Bernstein expects prediction markets to become a larger Robinhood revenue line than crypto as early as the second quarter. The firm projected about $150 million in prediction market revenue for Q2.
Robinhood's Rothera exchange has processed more than 3.5 billion contracts since launching in late May. World Cup markets accounted for about 93% of the platform's volume.
Bernstein described Robinhood and Kalshi as having a "frenemy" relationship. Robinhood still distributes Kalshi contracts, while also offering event contracts through Rothera, which represents about 16% of Robinhood's event-contract volume.
The forecast comes as crypto trading revenue faces pressure from weaker industry volumes. Bernstein cut its 2026 crypto trading revenue estimate by 49%, while viewing the slowdown as cyclical rather than permanent.
Robinhood Launches AI Agent Trading Feature
Robinhood opened its brokerage platform to third-party AI agents through a new Agentic Trading product. The feature allows users to connect autonomous software that can research markets, build portfolios, and place trades.
Customers can connect AI agents through Robinhood's Model Context Protocol infrastructure. The feature is available at no cost to U.S. customers for equities and options, while crypto support is expected later.
Robinhood said AI agents can access portfolio information, buying power, balances, transaction history, and watchlists. Users can require approval before trades or allow agents to trade automatically.
Second-Quarter Earnings Scheduled for July 29
The company is scheduled to report second-quarter earnings on July 29. Wall Street expects earnings of $0.55 per share and revenue of $1.27 billion.
FAQ
What price target did Bernstein set for Robinhood stock?
Bernstein raised its 12-month price target on Robinhood to $160 from $130 while maintaining an Outperform rating. The revised target uses a 2028 earnings-per-share estimate of $4.56, which Bernstein said is above consensus.
How many contracts has Robinhood's prediction market processed since launch?
Robinhood's Rothera exchange has processed more than 3.5 billion contracts since launching in late May. World Cup markets accounted for about 93% of the platform's volume.
When is Robinhood scheduled to report second-quarter earnings?
Robinhood is scheduled to report second-quarter earnings on July 29. Wall Street expects earnings of $0.55 per share and revenue of $1.27 billion.
