Why Wall Street Is Raising Robinhood (HOOD) Stock Targets to $165

Key Takeaways

• Citizens JMP increased HOOD price target to $165 from $155, keeping Market Outperform rating, suggesting potential ~46% gain from current $113.33 price
• The upgrade factors in anticipated Robinhood Chain revenues, with Citizens projecting approximately $1 million daily in net chain revenue by 2027
• Latest quarterly results delivered EPS of $0.62, surpassing analyst expectations of $0.44, while revenue climbed 32.5% year-over-year to $1.31 billion
• Several Wall Street firms recently boosted price targets, including Mizuho ($140), Jefferies ($140), Goldman Sachs ($142), and Bernstein ($160)
• Company insiders divested 570,260 shares valued at approximately $64.1 million during the last 90 days via pre-established Rule 10b5-1 trading plans

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Citizens JMP has elevated its price objective for Robinhood Markets (HOOD) to $165, up from the previous $155 target set on Friday, while maintaining its Market Outperform designation. With shares trading at $113.33 during the announcement, the revised target represents approximately 46% upside potential.

Robinhood Markets, Inc., HOOD

The catalyst behind this bullish revision centers on Robinhood Chain, the firm’s blockchain infrastructure. Citizens has incorporated approximately $1 million in daily net chain revenue into its 2027 projections, translating to roughly $365 million annually. This forecast presumes Robinhood achieves the 85% revenue-sharing tier by that timeframe, which would correspond to underlying sequencer revenue of approximately $1.2 million daily.

To put this in perspective, the projected figure sits about 65% beneath the $3.3 million average daily rate observed during the seven-day period concluding September 8. Citizens noted that Labor Day holiday activity likely skewed results higher and has opted not to extrapolate that elevated pace forward.

The updated $165 price objective applies approximately 30x EV/2027 adjusted EBITDA, complemented by long-term discounted cash flow modeling. The stock presently commands a P/E multiple around 50.

Wall Street Upgrades Momentum

Citizens isn’t the only firm expressing increased confidence. Mizuho pushed its target to $140, driven by anticipation surrounding AI-related initial public offerings. Jefferies similarly elevated its target to $140 following discussions with Robinhood’s Chief Financial Officer. Goldman Sachs boosted its objective to $142, emphasizing growth in the company’s prediction market initiatives. Bernstein maintained its Outperform stance with a $160 target, spotlighting Robinhood’s blockchain infrastructure as ranking among the Top 5 chains across multiple performance indicators.

According to MarketBeat data, the analyst consensus stands at Moderate Buy, with an average price target of $129.83. Among 27 analysts monitoring the stock, 23 assign Buy ratings, one rates it Strong Buy, and three recommend Hold.

The company’s latest quarterly performance provided substantial ammunition for optimistic analysts. Robinhood delivered earnings per share of $0.62, exceeding the consensus forecast of $0.44 by $0.18. Revenue reached $1.31 billion, beating the $1.29 billion estimate and representing a 32.5% increase compared to the prior-year quarter. Net profit margin reached 42.01%.

New Ventures and Growth Initiatives

Apart from blockchain development, Robinhood is advancing into prediction markets territory. The firm disclosed 15-fold year-over-year expansion in event contracts and established partnerships with Crypto.com and OG.com to broaden market reach. CEO Vlad Tenev has also expressed intentions to scale the company’s underwriting operations after participating in the Oura IPO.

Some challenges remain on the horizon. Robinhood is discontinuing sports prediction markets in Michigan following legal action, while its tokenized stock offerings have attracted public pushback from AMC CEO Adam Aron.

Regarding insider transactions, 570,260 shares were offloaded during the previous 90-day period for approximately $64.1 million, entirely through pre-established 10b5-1 trading arrangements. Institutional ownership accounts for 93.27% of outstanding shares.

The stock trades within a 52-week range spanning $63.51 to $153.86 and carries a market capitalization of approximately $101.89 billion.

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