Bernstein Reaffirms Robinhood 'Outperform' Rating with $160 Price Target

Analysts at Bernstein have reaffirmed their 'outperform' rating for Robinhood Markets, setting a price target of $160. The firm believes that Robinhood's newly launched Layer 2 network, Robinhood Chain, has become a significant contributor to the company's revenue.

In just over two months since its launch on July 1, Robinhood Chain has generated approximately $39 million in fees, with estimates suggesting it will reach an annualized $160 million by 2028. The network currently tops all others, generating around $33 million in fees over the past 15 days.

Robinhood retains around 90% of the fees earned on its chain, while Arbitrum takes home approximately 10%, and Ethereum receives less than 1% for data processing fees.