Robinhood Stock Rebounds on Bernstein Bullish Call

Ronald Blanco and Harshita Sarin of Bernstein maintain their Outperform rating and $160 price target for Robinhood Markets, implying a potential upside of about 81% from its current closing price.

The analysts point to the company's expansion into tokenization and prediction markets as key drivers for growth, with total event-contract revenue exceeding $156 million in the second quarter, surpassing crypto trading revenue. Rothera exchange, launched in June, has processed over 3.5 billion contracts, generating $17 million in revenue.

Despite a rebound of more than 2% on Thursday, Robinhood's stock remains below its July high near $120 and is trading at around $88.55. Bernstein's bullish case rests on the company's ability to convert newer products into durable revenue as crypto trading slows. However, regulatory scrutiny and execution risks remain key concerns for the brokerage.