StoneX analyst Mark Palmer has initiated coverage on Robinhood with a buy rating and a $170 price target, implying roughly 45% upside from Tuesday’s close of $117.34. Palmer said Robinhood is expanding beyond retail trading services and moving into exchange and blockchain infrastructure assets that carry software-like margins. He also highlighted Robinhood Chain, which launched its mainnet on July 1 and, over the past 24 hours, generated more gas-fee revenue than all other Ethereum Layer 2 networks combined. As of Sept. 3, the chain was producing about $4.59 million in daily fee revenue, while annualized revenue as of Aug. 29 was close to $39 million. StoneX projects Robinhood Chain could generate $980 million in revenue by fiscal 2029, with margins reaching 85%. In prediction markets, Robinhood traded 13.6 billion event contracts in the second quarter, including more than 5 billion tied to the World Cup alone, generating about $156 million in revenue, up 50% from the prior quarter. On Tuesday, Robinhood also announced partnerships with Crypto.com and OG.com, took stakes in both companies, and said it would route part of its event contracts to OG.com. Earlier, Bernstein analysts had also maintained an outperform rating on Robinhood with a $160 target.
StoneX analyst Mark Palmer has initiated coverage on Robinhood with a buy rating and a $170 price target. Based on Tuesday’s closing price of $117.34, that implies about 45% upside.
Palmer said Robinhood is expanding beyond retail trading services and using acquisitions of exchanges and blockchain infrastructure to move into businesses with software-like margins.
Robinhood Chain figures featured in the note
Palmer said Robinhood Chain launched its mainnet on July 1. Over the past 24 hours, the chain generated more gas-fee revenue than all other Ethereum Layer 2 networks combined.
As of Sept. 3, the chain’s daily fee revenue stood at about $4.59 million. As of Aug. 29, its annualized revenue was close to $39 million. StoneX forecasts that Robinhood Chain could produce $980 million in revenue by fiscal 2029, with margins reaching 85%.
Prediction market activity also highlighted
In prediction markets, Robinhood traded 13.6 billion event contracts in the second quarter. More than 5 billion of those came during the World Cup alone, generating about $156 million in revenue, up 50% quarter over quarter.
On Tuesday, Robinhood announced partnerships with Crypto.com and OG.com, took equity stakes in both companies, and said it would route part of its event contracts to OG.com.
Earlier, Bernstein analysts had also maintained an outperform rating on Robinhood with a $160 price target.
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