StoneX rates Robinhood with Buy and $170 target, citing Layer‑2 chain and prediction markets
Robinhood receives Buy rating and $170 price target from StoneX
StoneX Financial has issued a Buy rating on Robinhood and set a price target of $170 per share. The target suggests about 45 % upside from the stock’s closing price of $117.34 on Tuesday.
Key numbers
- Q2 revenue grew 32 % year‑on‑year to $1.31 billion.
- Cryptocurrency revenue fell 38 %, now 8 % of total revenue versus 16 % a year earlier.
- Robinhood Chain daily fees reached roughly $4.59 million on Sep 3; annualized revenue was near $39 million as of Aug 29.
- Prediction‑market contracts traded totaled 13.6 billion in Q2, generating $156 million in revenue, a 50 % increase from the prior quarter.
StoneX analyst commentary
Mark Palmer, managing director and senior research analyst at StoneX, said the company’s operating metrics are “accelerating.” He highlighted Robinhood’s move into exchange and blockchain infrastructure at low cost, especially the Robinhood Chain, a Layer‑2 solution that launched on mainnet on July 1 and now collects more gas fees than any other Ethereum Layer‑2.
Palmer’s model projects the Robinhood Chain could produce $980 million in revenue by fiscal year 2029 with an 85 % margin.
Prediction markets growth
Robinhood’s prediction‑market business is another focus. The firm announced partnerships with Crypto.com and OG.com, taking equity stakes and routing event contracts to multiple venues. JB Mackenzie, VP and GM of futures and prediction markets at Robinhood, said the deals will create a stronger and more resilient marketplace, especially with the upcoming NFL season and midterm elections.
Other analyst view
Bernstein analysts also maintain an Outperform rating on Robinhood with a $160 price target, implying roughly 31 % upside from the Tuesday close.
