NEW YORK: Morgan Stanley issued a Robinhood stock upgrade on September 1, lifting Robinhood Markets, Inc. Morgan Stanley upgraded Robinhood Markets, Inc. from Equal-weight to a more favourable rating on September 1 and raised its price target to USD 150 from USD 124.
The new target implied about 43% upside from Robinhood’s August 31 closing price, according to MarketWatch. Shares rose about 2% in Tuesday premarket trading following the rating change.
Morgan Stanley analyst Michael Cyprys said Robinhood’s wider product range was producing more assets and activity per customer. He raised the bank’s earnings-per-share estimates for 2026 through 2028 by 12% to 15%.
Prediction markets were a key reason for the upgrade. Robinhood reported USD 156 million in event-contract revenue for the quarter ended June 30, up more than tenfold from a year earlier.
On September 1, Robinhood Markets, Inc. (NASDAQ: HOOD) raised its price target to USD 150 from USD 124.
That compared with USD 129 million from equities and USD 100 million from cryptocurrency trading. Robinhood also reported 13.6 billion event contracts traded during the quarter.
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Total platform assets rose 32% year over year to USD 369 billion, while Robinhood Gold subscribers increased 39% to 4.8 million. The company said 13 business lines had reached at least USD 100 million in annualised revenue.
The company began routing selected prediction-market contracts through Rothera in June. Rothera is a Commodity Futures Trading Commission-licensed exchange and clearinghouse operated through Robinhood’s joint venture with Susquehanna International Group.
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Morgan Stanley now forecasts Robinhood revenue will grow at a 23% compound annual rate through 2028 to about USD 8 billion. That figure is an analyst projection rather than company guidance.
