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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14 Articles
Robinhood Sees Record Trading Volumes Driven by NFL and Event Markets, Says Analyst - Archysport
Robinhood Markets shares continue to draw strong institutional backing as Piper Sandler reaffirmed its Overweight rating and a $135 price target on the stock, driven by an ambitious European product expansion and surging activity across digital asset platforms. According to financial analysis reports, the brokerage’s latest rollouts include real-world asset perpetual futures and decentralized exchange ...
Robinhood Stock Gets $150 Target as Morgan Stanley Turns Bullish
Key Insights: Morgan Stanley has raised its Robinhood stock price target from $124 to $150 and upgraded the stock to Overweight. The firm sees Robinhood gaining more revenue from its existing base of about 28 million customers. Robinhood now has 13 business lines generating at least $100 million in annualized revenue. Morgan Stanley has upgraded Robinhood Markets to Overweight from Equal Weight and raised its price target to $150 from $124. Ana…
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