Morgan Stanley Pumps Up Robinhood Forecast to $150
Morgan Stanley has upgraded Robinhood Markets' stock to Overweight from Equal-weight and raised its price target to $150, representing a 43% upside from Monday's closing price. The upgrade comes despite broader cryptocurrency-related stocks declining, with Coinbase and Strategy trading lower in premarket activity.
The bank cited several factors supporting the upgrade, including Robinhood's expanding product lineup, stronger customer engagement, and growing asset-based revenues. Analysts led by Michael Cyprys noted that the company's broader product capabilities are improving the economics of its existing customer base.
Morgan Stanley also highlighted Robinhood's ability to generate more revenue from its existing customer base rather than relying primarily on growth in funded accounts. The company now has 13 business lines generating more than $100 million (approx. ₹9.4 billion) in annualized revenue, according to the bank.
The bank raised its earnings-per-share estimates for the next three years by 12%, 14% and 15%, respectively, citing Robinhood's growing asset-based revenues and prediction markets as major growth opportunities. Morgan Stanley expects Robinhood's revenue to grow at a 23% compound annual growth rate through 2028, reaching $8 billion (approx. ₹751.9 billion), about 6% above consensus estimates.