Bernstein Raises Robinhood’s Price Target to $51 on Crypto Optimism
Wall Street investment bank Bernstein has identified Robinhood Markets Inc as a potential major beneficiary if US crypto regulations ease under a pro-crypto Securities and Exchange Commission (SEC), according to a research report published on Wednesday.
Bernstein Raises Robinhood’s Target Price amid Optimism Over Pro-Crypto SEC
Bernstein notes that optimism regarding regulatory changes has increased following Trump's presidential election win. The anticipated regulatory adjustments could significantly benefit the trading app, prompting the broker to raise its price target for Robinhood shares from $30 to $51.
Currently, Robinhood operates under strict crypto regulations, listing only 19 crypto tokens for American clients, including Solana (SOL), Cardano (ADA), and XRP, which was added recently.
Despite limited crypto services and no revenue from staking, lending, or derivatives, analysts believe Robinhood's prospects may improve with easing restrictions.
Expanding Crypto Services Through Strategic Moves
Bernstein suggests that Robinhood's future success appears more likely due to its recent acquisition of Bitstamp Exchange and its European platform. This acquisition could enable the introduction of staking, stablecoin access, and lending services, enhancing Robinhood's position in the crypto market and increasing revenues.
Additionally, Bernstein's report indicates a higher likelihood of Robinhood listing more tokens, contingent on a more favorable regulatory environment. With a growing user base reaching 24 million, as reported by Coinspeaker, Robinhood is positioned to become a leading platform in the crypto industry.
Following these developments, Robinhood’s stock price rose over 2% in early trading, reaching approximately $36.