Bernstein sees 31% upside for Robinhood as its Chain generates strong fees
Robinhood Chain drives earnings, analysts see 31% upside
Bernstein analysts kept an Outperform rating on Robinhood Markets and set a $160 price target, which suggests about a 31% upside from the current share price of $122.11. The analysts highlighted rapid growth of Robinhood’s Layer‑2 network, Robinhood Chain, since its launch on July 1.
Key numbers
- Robinhood shares closed at $122.11, down 2.09% on Friday.
- Robinhood Chain has $1.5 billion in total value locked (TVL) and over $50 billion in decentralized exchange (DEX) volume.
- Fees earned in the last 15 days total $33 million, topping Solana ($11 million) and BNB Chain ($9 million).
- Robinhood retains roughly 90% of those fees; about 10% goes to Arbitrum and less than 1% to Ethereum for data.
- Tokenized‑stock value on the chain rose from $10 million to $140 million in two months.
- Stablecoin supply on the chain reached about $1 billion, up from $241 million in early July.
Analyst report
In a note to clients, analysts led by Gautam Chhugani wrote, “The chain is now earnings.” They said the network’s trading fees are tracking at $2 million to $4 million per day and projected $160 million in annual fees by 2028.
Confirmed information
- Robinhood’s share price was $122.11 at market close on the reported Friday.
- Robinhood Chain launched on July 1.
Reported estimates
- Fee earnings of $2 million–$4 million per day and $33 million over the past 15 days are analyst estimates.
- Projected $160 million in annual fees by 2028 is an analyst forecast.
- Tokenized‑stock value increase to $140 million and stablecoin supply reaching $1 billion are based on analyst data.
Why it matters
Robinhood’s ability to generate significant fee revenue from its blockchain could diversify its income beyond its traditional brokerage business. The high fee share (90%) means most earnings stay with Robinhood, potentially supporting its valuation.
