Bernstein analysts on Tuesday raised Robinhood's (NASDAQ:HOOD) price target to $160, citing expectations that the trading platform's revenue will surge from $2.9 billion in 2024 to $6.8 billion by 2026.
This projection reflects a compound annual growth rate (CAGR) of over 51.7%.
The new target implies a 36% upside from Robinhood's Sep. 8 closing price of $117.28.
Bernstein reaffirmed its outperform rating, calling Robinhood's inclusion in the S&P 500 "very deserving" and pointing to the firm's rapid market share expansion across both equities and crypto.
The company now commands 30% of U.S. retail crypto trading and 24% of equity options, positioning it as the leading retail crypto competitor to Coinbase (NASDAQ:COIN) after the collapse of FTX and Binance U.S.
Still, Bernstein sees the real growth driver in wealth management.
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Robinhood has just 2.7% of the $110 billion U.S. broking and advisory pool, leaving significant room to expand.
Its Gold program, with 3.5 million paying members, already provides recurring subscription revenue while bundling services such as higher deposit rates, credit cards, and mortgage products.
Another structural growth opportunity is tokenization. Robinhood plans to launch a blockchain-based marketplace for U.S. equities and private markets, betting that tokenized assets will redefine how investors access liquidity.
"Trading is the entry point," Bernstein noted, "but wealth is where the real monetization lies."
The firm highlighted Robinhood's "product velocity and execution quality" as critical to capturing new markets, particularly as it broadens services and integrates blockchain infrastructure.
If successful, analysts argue Robinhood could reshape the interface between retail investors, digital assets, and traditional wealth management.
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