Robinhood Stock Target Raised to $160 on Blockchain Infrastructure

Analysts at Bernstein have increased their target price for Robinhood stock to $160, citing long-term value in the company's blockchain infrastructure.

The key driver behind this move is not the trading volume of cryptocurrencies, but rather the growing adoption and usage of Robinhood Chain. The platform's Wrapped ETH has seen a 2% increase over the past week, with daily trading volumes reaching $44 million.

Bernstein analysts believe that prediction markets, perpetual futures, and Robinhood Chain will generate 18% of total revenue by 2027, rising to 23% in 2028. Prediction markets alone are expected to contribute $1.7 billion by 2028.

The firm's EPS estimate for 2028 stands at $4.56, with a forward P/E multiple of 35x. This increased target price reflects the growing importance of blockchain infrastructure and its potential for long-term revenue growth.