Morgan Stanley Sees Robinhood Surpass $150 on Prediction Market Boom

Morgan Stanley upgraded Robinhood Markets Inc. (NASDAQ:HOOD) to Overweight from Equal-weight, predicting a $150 price target and a roughly 43% upside from Monday's close.

The analyst cited Robinhood's growing revenue from prediction markets as a key example, with the company generating $156 million in Q2 from fewer than 2 million customers.

This beats the $129 million made from stock trading and the $100 million from crypto. The upgrade comes despite Morgan Stanley cutting its crypto forecasts.

Rather than simply adding another fee line, new products like prediction markets are lifting assets and activity per customer, said Michael Cyprys, the analyst.