Robinhood Markets shares surged in pre-market trading Monday after Bernstein lifted its price target from $130 to $160, maintaining an Outperform rating. The new target signals over 60% upside from last week’s lows as the firm anticipates strong revenue growth driven by new products.
Growth Projections and Market Strategy
Analyst Gautam Chhugani highlighted the company’s expansion into prediction markets, perpetual futures, and tokenized equities as key factors behind the revised outlook. He projected that prediction market revenue could reach $1.7 billion by 2028, fueled by growth from Robinhood’s Rothera exchange joint venture. The forecast includes a compound annual growth rate (CAGR) in revenues of 32% from 2026 to 2028, 47% growth in EBITDA, and a 49% CAGR in earnings per share.
Bernstein’s valuation uses a 35x forward earnings multiple based on an estimated 2028 EPS of $4.56. The brokerage’s collaborative yet competitive relationship with Kalshi is notable: Robinhood distributes Kalshi contracts to its clients and contributes 16% of total event contracts via Rothera, its rebranded exchange platform formed after acquiring LedgerX with Susquehanna International Group in December 2025.
The ability to operate its own exchange offers Robinhood greater control over pricing and economics, while still benefiting from Kalshi’s marketplace. Event contracts were introduced on Rothera in May, expanding Robinhood’s footprint in prediction markets.
Robinhood’s stock closed at $99.96 on July 17, down $6.06 in regular trading, but rebounded to $102.25 pre-market, up 2.29%. The firm’s outlook assumes that new business lines will drive stronger revenue and earnings through 2028, supported by the expanded product suite.
This material is for informational purposes and does not constitute financial advice.
