Robinhood (HOOD) Stock Surges on Bernstein’s $160 Price Target Upgrade

Key Highlights

• Bernstein increased Robinhood (HOOD) price target to $160 from $130 while keeping Outperform rating
• Shares bounced to $102.25 during pre-market hours following a $99.96 close on July 17
• Prediction markets expected to emerge as fastest-growing division, reaching $1.7B in revenues by 2028
• The company’s Arbitrum-powered layer-2 blockchain, Robinhood Chain, sets stage for tokenized asset expansion
• Second-quarter financial results scheduled for release on July 29, with analysts projecting $1.27B in sales

Investment firm Bernstein lifted its valuation outlook for Robinhood Markets (HOOD) to $160 per share from a previous $130 target on Monday, highlighting prediction markets and tokenized securities as emerging catalysts for expansion.

Shares of HOOD climbed to approximately $102.25 during pre-market sessions following a Friday close at $99.96 on July 17, marking a roughly 2.29% uptick before regular trading. The updated $160 price objective represents more than 60% potential appreciation from the prior week’s closing level.

Robinhood Markets, Inc., HOOD

Bernstein analyst Gautam Chhugani maintained his Outperform recommendation while emphasizing that emerging product offerings will fuel accelerated top-line and bottom-line performance extending to 2028.

The analyst’s projections include a 32% compound annual revenue growth rate spanning 2026 through 2028, alongside EBITDA expansion at 47% and earnings per share climbing at a 49% CAGR. His $160 valuation relies on a 35x forward price-to-earnings ratio applied to a projected 2028 EPS of $4.56.

The prediction markets division is anticipated to deliver the most rapid expansion, with Chhugani estimating $1.7 billion in annual revenue by 2028 — representing a 64% compound growth trajectory. This segment’s momentum is partially driven by Robinhood’s Rothera platform, a collaborative venture with Susquehanna International Group that was rebranded following the LedgerX acquisition completed in December 2025.

Event contracts went live on Rothera in May 2026, with the platform now capturing 16% of total event contract volume. Meanwhile, Robinhood maintains distribution of Kalshi contracts to its customer base, establishing dual-channel access to prediction market opportunities.

Blockchain-Based Securities Represent Future Growth Avenue

The investment firm identified tokenized securities as a substantial multi-year growth opportunity, highlighting Robinhood Chain — the firm’s custom Arbitrum-based layer-2 blockchain — as foundational infrastructure for tokenized real-world assets.

Bernstein’s research team anticipates the total value of blockchain-based real-world assets expanding from approximately $35 billion currently to a range between $2 trillion and $4 trillion by decade’s end. Tokenized equities are projected to capture growing market share as adoption extends beyond government securities and private lending instruments.

The tokenization sector continues attracting institutional participants. Alpaca and Broadridge Financial Solutions revealed Monday they had incorporated shareholder voting capabilities into Alpaca’s Instant Tokenization Network. In a separate development, Securitize joined forces with Cantor Fitzgerald last week to build infrastructure supporting blockchain-enabled initial public offerings.

Second Quarter Financial Report Due July 29

Bernstein indicated Q2 financial performance should align with Street consensus, as prediction market contributions are expected to balance weaker digital asset activity.

Cryptocurrency markets have shown persistent weakness, with Bitcoin trading near $64,600 and struggling to break through $65,000 resistance for more than four weeks.

The company will publish second-quarter earnings on July 29. Consensus estimates from Wall Street analysts call for quarterly revenue of $1.27 billion.