StoneX Sees $170 Upside in Robinhood Stock on Diversified Revenue Streams
StoneX Financial has initiated coverage of Robinhood stock with a bullish Buy rating and a price target of $170. This represents approximately 45% upside from the current stock price.
The call comes from Mark Palmer, managing director and senior research analyst at StoneX. He views Robinhood as no longer just a trading app but a platform that is diversifying its revenue streams.
Crypto revenue has decreased to 8% of net revenue, down from 16% last year. However, the company's Ethereum Layer 2 network, Robinhood Chain, has seen impressive growth in gas-fee collections, with daily fees reaching $4.59 million by September 3.
StoneX projects that this business alone could generate $980 million in revenue by fiscal 2029 at an 85% margin. The report also highlights the potential of prediction markets, which brought in $156 million in revenue during the second quarter.