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Morgan Stanley Upgrades Robinhood Stock, Raises Target to $150

Morgan Stanley said Robinhood can squeeze more revenue from its 28 million users, citing prediction markets that generated $156 million in second-quarter revenue.

  • On Tuesday, Morgan Stanley upgraded Robinhood Markets to overweight from equal weight, raising its price target from $124 to $150, implying 43% upside from Monday's close.
  • Analyst Michael Cyprys argues Robinhood's platform turns "product velocity into stronger customer economics," with the company's potential to extract greater revenue from existing customers remaining undervalued by investors.
  • Prediction markets generated $156 million in second-quarter revenue from fewer than 2 million users, demonstrating leverage across the firm's base of roughly 28 million users.
  • Notably, the upgrade aligns with broader Wall Street sentiment, as 22 of 28 analysts covering the stock rate it a buy or strong buy despite falling cryptocurrency volumes.
  • Robinhood's derivatives exchange and clearinghouse, Rothera, extends the company's distribution advantage into infrastructure, adding exchange economics on its own flow and potential third-party revenue.
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CNBC broke the news in Englewood Cliffs, United States on Tuesday, September 1, 2026.
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