Bernstein Sees $160 Price Target for Robinhood as Prediction Markets Gain Traction

Investment bank Bernstein has raised its price target for Robinhood Markets (HOOD) to $160, from $130, citing the company's potential to benefit from emerging financial markets worth over $70 billion. These markets include prediction contracts, perpetual futures, and tokenized stocks.

The firm projects that Robinhood will see a significant shift in revenue composition, with its prediction-market revenue surpassing cryptocurrency trading revenue by Q2 2025. This marks a strategic pivot for the company, which has historically been tied to crypto market activity.

Bernstein analysts believe that the current weakness in the broader cryptocurrency market is cyclical rather than structural, and do not factor in a potential rebound in Bitcoin prices. If this view is correct, it could mean further upside for Robinhood if crypto markets recover.