JPMorgan Doubles Robinhood Price Target to $98 Citing Crypto Expansion
JPMorgan has raised its 2026 price target for Robinhood (HOOD) to $98 from $47, highlighting new product launches and the acquisition of European crypto exchange Bitstamp.
Key points include:
- Robinhood reports Q2 earnings on Wednesday; expected EPS is 31 cents, up from 21 cents year-over-year.
- Transaction-based revenue projected at $515 million.
- Crypto trading revenue anticipated to double to $169.3 million from $81 million last year, but below Q1's $247 million.
- Shares have increased 170% this year, currently at $105.95, down 0.7%.
- Bitstamp acquisition for $200 million closed in June, boosting operating leverage.
- Launch of tokenized stock trading in the EU under MiCA regulations begins this month, allowing around-the-clock trading of over 200 equities and ETFs.
- Robinhood plans to offer access to private companies like OpenAI and SpaceX, expanding investment opportunities for users.
- U.S. regulators are becoming more open to tokenized equity trading, as indicated by a recent broker-dealer license granted to a related startup.
Wall Street appears to be increasingly optimistic about Robinhood’s future despite current earnings growth.