Bernstein raises Robinhood target to $160 on tokenized assets

Bernstein raised its price target on Robinhood Markets to $160 from $130 and maintained an Outperform rating in a research note published Monday. The firm said HOOD shares were trading around $101 at the time of the report.

The note projected that prediction markets could be Robinhood’s fastest-growing business, forecasting segment revenue of $1.7 billion by 2028 and a 64% compound annual growth rate through that period.

Bernstein identified tokenized equities as a major long-term opportunity. The analysts highlighted Robinhood Chain, the company’s Arbitrum-based layer-2 network, as proprietary infrastructure that would allow the platform to build on-chain financial products without relying on third-party blockchains.

The research projected the value of on-chain real-world assets could expand to between $2 trillion and $4 trillion by 2030 from roughly $35 billion today. The analysts said tokenized equities are likely to take an increasing share of that market as tokenization moves beyond areas such as Treasury securities and private credit.

The note described Robinhood as competing across several “battleground” asset classes, including prediction markets, perpetual futures and tokenized real-world assets. The analysts contrasted those areas with the period when retail crypto trading was a central revenue source for the company.

The report came as firms expanded infrastructure for tokenized securities. Brokerage infrastructure provider Alpaca integrated Broadridge Financial Solutions’ shareholder governance tools into Alpaca’s Instant Tokenization Network, adding proxy voting, investor communications and regulatory disclosure capabilities for tokenized securities.

Separately, tokenization platform Securitize and investment bank Cantor Fitzgerald announced a partnership to develop infrastructure for blockchain-based initial public offerings and follow-on equity offerings within existing U.S. securities regulations.

Data cited in industry reporting put tokenized stocks at nearly $2 billion in market value this year. Industry integrations aim to give token holders governance rights similar to traditional shareholders, including proxy voting and regulatory disclosures.

In its note, Bernstein linked Robinhood’s blockchain investments and product roadmap to projected growth in tokenized assets and on-chain markets.