TLDR
- Bernstein raised its Robinhood (HOOD) price target from $130 to $160, maintaining an Outperform rating
- HOOD stock recovered to $102.25 in pre-market after closing at $99.96 on July 17
- Prediction markets forecast to become Robinhood’s fastest-growing segment, hitting $1.7B revenue by 2028
- Robinhood Chain, an Arbitrum-based layer-2 network, positions the firm for tokenized real-world asset growth
- Q2 earnings are due July 29, with Wall Street expecting $1.27B in revenue
Bernstein raised its price target on Robinhood Markets (HOOD) to $160 from $130 on Monday, citing tokenized equities and prediction markets as the company’s next major growth drivers.
HOOD stock was trading around $102.25 in pre-market after closing at $99.96 on July 17, representing a pre-market gain of roughly 2.29%. That put the new $160 target at over 60% upside from Friday’s low.
Analyst Gautam Chhugani kept his Outperform rating and pointed to newer business lines as the engine behind stronger revenue and earnings through 2028.
Chhugani forecast a 32% compound annual growth rate in revenues from 2026 to 2028, with EBITDA growing at 47% and earnings per share at a 49% CAGR. The $160 target was based on a 35x forward earnings multiple and a 2028 EPS estimate of $4.56.
Bernstein SocGen Group Raises $HOOD PT to $160 from $130 – Outperform
Analyst comments: "We expect Robinhood to expand into prediction markets, perpetual futures, and tokenized equities, which are key drivers behind our revised price target. We project prediction markets revenue… pic.twitter.com/8uEmjWIZwu
— Wall St Engine (@wallstengine) July 20, 2026
Prediction markets are expected to be the fastest-growing segment, with Chhugani projecting $1.7 billion in revenue by 2028 — a 64% compound annual growth rate. That growth is tied in part to Robinhood’s Rothera exchange, a joint venture with Susquehanna International Group that was rebranded from LedgerX after its acquisition in December 2025.
Rothera launched event contracts in May 2026 and currently accounts for 16% of total event contracts on the platform. Robinhood also continues to distribute Kalshi contracts to clients, giving it exposure to two prediction market channels at once.
Tokenization as a Long-Term Play
Bernstein flagged tokenized equities as a major long-term opportunity, pointing to Robinhood Chain — the company’s proprietary Arbitrum-based layer-2 network — as its infrastructure for tokenized real-world assets.
The analysts project the value of on-chain real-world assets will grow from roughly $35 billion today to between $2 trillion and $4 trillion by 2030. Tokenized equities are expected to take an increasing share of that growth as adoption moves beyond Treasury securities and private credit.
The broader tokenization space is also gaining institutional traction. Alpaca and Broadridge Financial Solutions announced on Monday that they had integrated shareholder governance tools into Alpaca’s Instant Tokenization Network. Separately, Securitize and Cantor Fitzgerald last week announced a partnership to develop infrastructure for blockchain-based IPOs.
Q2 Earnings on July 29
Bernstein said Q2 results should meet analyst expectations, with prediction market revenue expected to offset softer crypto activity.
The crypto market has remained weak, with Bitcoin trading around $64,600 and facing resistance above $65,000 for over a month.
Robinhood is scheduled to report Q2 earnings on July 29. Wall Street is expecting $1.27 billion in revenue for the quarter.
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