TLDR
- Mizuho raised its HOOD price target to $140 from $130, maintaining an Outperform rating, citing upcoming AI IPOs as a catalyst for trading volume growth.
- The SpaceX IPO drove a 24% month-over-month rise in equity volumes and a 38% jump in options contracts on the platform.
- Goldman Sachs raised its target to $142 from $124, pointing to early success of Rothera, Robinhood’s prediction-market venture, which generated ~$150M in annualized revenue in its first quarter.
- Jefferies also lifted its target to $140, citing solid business momentum, strong net deposits, and growth in Gold subscribers.
- HOOD carries a Strong Buy consensus from 16 Buy and 2 Hold ratings, with an average price target of $131.73, implying 12% upside from current levels.
Robinhood (HOOD) stock was up more than 2% in pre-market trading Wednesday after falling 3.91% in the prior session. The stock currently trades around $117.34, up roughly 3.75% year-to-date.
The bounce came after Mizuho analyst Dan Dolev raised his price target on HOOD to $140 from $130, a roughly 7.7% increase, while keeping his Outperform rating in place. The new target implies about 16% upside from current levels.
Dolev pointed to upcoming AI IPOs as a potential driver for Robinhood’s trading volumes. He expects the effect to mirror what happened when SpaceX went public, which sent equity volumes up 24% month-over-month and options contracts up 38% on the platform.
The SpaceX IPO also helped Robinhood add roughly 1 million funded customers in the second quarter, its biggest quarterly gain in nearly five years, according to CFO Shiv Verma.
Dolev believes those trends could repeat if AI companies begin hitting the market in October and into 2027. He said the upcoming IPOs could “meaningfully boost HOOD’s trading volumes” if conditions echo the post-SpaceX environment.
On valuation, Mizuho values HOOD at about 19 times estimated 2027 revenue, compared to around 15 times currently. Dolev sees that premium as justified given Robinhood’s growth potential and expansion into new products and markets, including what he describes as a “$600bn TAM with new products and geographies.”
Goldman Sachs and Jefferies Also Turn More Bullish
Goldman Sachs analyst James Yaro raised his price target to $142 from $124, reiterating a Buy rating. That implies about 21% upside. Yaro highlighted the early performance of Rothera, Robinhood’s prediction-market joint venture with Susquehanna International Group.
Rothera generated around $150 million in annualized revenue in its first quarter of operation. Yaro expects the business to keep growing, helped by Robinhood’s large retail customer base and what he calls “deep liquidity potential” and lower fees than competing prediction-market platforms.
Jefferies analyst Daniel Fannon also raised his target to $140 from $127, keeping a Buy rating after meeting with CFO Shiv Verma. Fannon cited solid business momentum, strong net deposits, and continued growth in Gold subscribers.
Robinhood Chain Picks Up Steam
Fannon also pointed to Robinhood Chain, where daily fees hit $8.2 million on September 4 and daily trading volume reached $3.8 billion. Bernstein SocGen Group separately reiterated an Outperform rating, noting the chain has become a top-5 blockchain by transaction fees and trading volumes.
HOOD has risen 33% relative to the S&P 500 since early August, a run Mizuho attributes largely to prediction-market excitement.
TipRanks consensus sits at a Strong Buy, based on 16 Buys and 2 Holds over the past three months, with an average price target of $131.73.
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