Deutsche Bank raised its price target on Robinhood Markets to $138 from $136 in a Sept. 14, 2026 note and maintained a Buy rating. Based on the $112.57 share price cited in the report, that points to about 22.6% upside. Analyst Brian Bedell said after a London roadshow that Robinhood's August operating metrics were broadly in line with expectations, while crypto trading volume remained strong and both margin loans and cash sweep balances kept rising.
Deutsche Bank said Robinhood is shifting from a trading platform into a global financial services ecosystem. In the bank's view, prediction markets, tokenization and international expansion are the company's most important long-term growth opportunities. It also said Robinhood could have about 14 business lines generating more than $100 million each by the end of 2026.
Prediction market users exceed 2 million
The report said Robinhood's prediction market business now has more than 2 million users, making it one of the fastest-growing parts of the company.
According to Deutsche Bank, Robinhood routes some event contracts to partner exchanges, a move that suggests the company wants to diversify execution venues. Management said it was optimistic about contracts tied to football season and the midterm elections. The Rothera exchange is still being developed, and most contracts are expected to be routed there over time.
Management is also looking at expanding the range of contracts on Rothera, including company KPI contracts, while waiting for the U.S. Securities and Exchange Commission to review Cboe's application. The SEC comment period has been extended to Oct. 13.
Robinhood Chain seen reaching a $100 million annualized revenue run rate
Deutsche Bank said Robinhood Chain launched in early July. Activity on meme coin issuance platforms surged by late August, tokenized stock trading approached 200 names, and perpetual contracts had already started generating trading fees.
Management said the chain should continue attracting developers and decentralized trading activity. Strategically, it is meant to help individuals in 120 countries access risk assets on a 24x7 basis. Deutsche Bank said Robinhood Chain could become a business running at a $100 million annualized revenue pace in the fourth quarter.
The report also detailed the chain's revenue-sharing terms with launch partners. Robinhood keeps 50% of sequencer revenue on the first $50 million, 70% on revenue between $50 million and $150 million, and 85% above $150 million. Management said on-chain volume is not counted in crypto trading volume. Deutsche Bank described that revenue split as an incremental positive.
August operating metrics were largely in line
Deutsche Bank listed the following August operating data:
- Equities notional volume was $335 billion, versus $333 billion in July.
- Options contracts totaled 293 million, versus 324 million in July.
- Crypto trading volume on the Robinhood app was $7.4 billion, up from $4.3 billion in July.
- Bitstamp crypto trading volume was $10.1 billion, versus $6.6 billion in July.
- Event contracts totaled 4.7 billion, compared with 6.1 billion in July.
The report also gave several customer and funding indicators:
- Net deposits were $4 billion in August, with a 14% annualized organic growth rate.
- Funded customers reached 28.6 million at the end of August.
- Margin loan balances were $21.5 billion.
- Cash and deposits stood at $19.6 billion.
- Cash sweep balances were $31.2 billion.
Securities lending net revenue was negative $8 million in August, below Deutsche Bank's earlier estimate of $13.3 million.
International expansion and AI trading accounts
Management said Robinhood is continuing its international rollout market by market. The U.K. launch is starting with a crypto-first approach, the acquisition in Canada has been completed, and Singapore and Indonesia are in the pipeline. Deutsche Bank said that measured expansion allows the company to localize products and manage execution risk. It also said decentralized access through Robinhood Chain could support both international expansion and brand building.
On AI products, management said AI agent trading accounts have exceeded 100,000, with more than $100 million in assets. The Cortex AI assistant is being expanded into more functions and use cases. Management expects to show more trading capabilities at a summit in Houston on Sept. 29-30.
EPS estimates moved higher
Deutsche Bank raised its third-quarter 2026 EPS estimate to $0.58 from $0.57. It lifted its full-year 2026 estimate to $2.33 from $2.32, its 2027 estimate to $3.53 from $3.48, and its 2028 estimate to $4.95 from $4.93. Adjusted EBITDA forecasts were also increased.
The bank said its EPS forecasts are above consensus by 12% for the third quarter of 2026, 7% for full-year 2026, 21% for 2027 and 38% for 2028.
According to the report, the $138 target price is based on 2027 EPS and a forward price-to-earnings multiple using a 90% premium to the S&P 500. Deutsche Bank said that valuation sits at the midpoint of Robinhood's relative P/E over the past 12 months and below one standard deviation.
Risks listed in the report
Deutsche Bank said downside risks include lower trading volumes, reduced crypto adoption, weaker payment for order flow, expenses above expectations, regulatory risk, slower execution on growth plans, stronger competition, security concerns, acquisition dilution risk and credit card credit losses.
The bank's view is that prediction markets and Robinhood Chain are emerging as two new revenue pillars as Robinhood moves beyond a trading platform toward a broader financial services ecosystem.
The ratings, price target, earnings forecasts and related judgments cited here come from Deutsche Bank's Sept. 14, 2026 research report and reflect the analyst's and the institution's views, not investment advice.