TLDR
- Morgan Stanley upgraded Robinhood (HOOD) to Overweight (Buy) from Equal-weight (Hold)
- Price target raised to $150 from $124, implying 43% upside from current levels
- Analyst Michael Cyprys lifted 2026-2028 earnings estimates by 12% to 15%
- HOOD has 13 business lines each generating over $100 million in annualized revenue
- Wall Street overall holds a Strong Buy consensus with an average target of $125.11
Robinhood (HOOD) stock climbed about 3% in premarket trading on Tuesday after Morgan Stanley upgraded the stock and lifted its price target.
Analyst Michael Cyprys moved his rating to Overweight from Equal-weight and raised his price target to $150 from $124. That new target implies around 43% upside from recent prices.
HOOD was trading around $105 heading into Tuesday’s session, with the premarket move putting it closer to $108.
Cyprys said the upgrade comes down to one key idea: Robinhood’s platform is getting better at making money from the customers it already has, not just adding new ones.
He pointed to assets per customer rising 23% year over year. Gold subscribers, Robinhood’s premium tier, hold around 4.2 times the assets of the average customer.
13 Business Lines, One Big Opportunity
Robinhood now has 13 separate business lines each generating more than $100 million in annualized revenue. That kind of diversification means fewer single points of failure for revenue.
Prediction markets are a useful example here. Fewer than 2 million users generated $156 million in second-quarter revenue from that product alone.
Cyprys raised his 2026 to 2028 earnings estimates by 12% to 15%, reflecting his more optimistic view on how the platform’s product expansion translates into profit.
Morgan Stanley is forecasting a 23% revenue compound annual growth rate through 2028, reaching $8 billion. That sits about 6% above Wall Street consensus.
The bank also sees EBITDA margins expanding from 48% to 53% as the company keeps a handle on expenses while revenue grows.
Catalysts Ahead
Morgan Stanley flagged several near-term events worth watching. The HOOD Summit on September 29-30 is one, along with product launches including Rothera, perpetual futures, and agentic trading.
The $150 price target is based on a 25 times multiple applied to 2031 probability-weighted earnings.
Cyprys also believes investors are underestimating how much the existing 28 million customer base can contribute to revenue growth, without needing a surge in new funded accounts.
Wall Street broadly agrees with the positive view. HOOD carries a Strong Buy consensus rating based on 16 Buy ratings and 2 Holds.
The average analyst price target across Wall Street sits at $125.11, implying about 19% upside. HOOD stock is down around 7% year-to-date heading into September.
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