Bernstein analysts this week reaffirmed their Outperform rating on Robinhood stock, setting a $160 price target that implies an 85% upside from current levels. The call hinges on two crypto-adjacent bets: tokenization and prediction markets, which the firm sees as key growth drivers for the trading app turned financial super app.
Why Bernstein sees 85% upside
The $160 target isn't just a round number — it reflects a bet that Robinhood's crypto business is evolving beyond the fee-collection model that defined its early foray into digital assets. Bernstein's analysts argue that the company is building infrastructure that could generate recurring revenue streams, not just transaction-based income. That shift, they say, justifies a higher multiple.
Beyond trading fees: Robinhood's infrastructure bet
Robinhood has been quietly expanding its crypto backend. The analysts specifically called out Robinhood Chain, the company's own blockchain network, as a piece of that puzzle. Tokenized stocks — real-world assets represented on-chain — are another area where Bernstein sees Robinhood gaining an edge. The idea: let users trade traditional equities in a crypto-native format, bridging two worlds that have historically operated separately.
Prediction markets as a growth lever
Prediction markets have been a hot topic in crypto this year, and Bernstein thinks Robinhood is well positioned to capture that wave. The platform already has a massive retail user base that's comfortable with speculative trading. Adding prediction contracts — where users bet on outcomes of events — could drive engagement and fee volume without requiring Robinhood to reinvent its user experience.
The company hasn't announced a formal timeline for rolling out tokenized stocks or expanding Robinhood Chain beyond its current test phase. But with Bernstein's stamp of approval and a price target that's well above where the stock trades today, the pressure is on management to deliver on those infrastructure promises. The next quarterly earnings call will be the first real test of whether the strategy is gaining traction.
