StoneX Sees 45% Upside for Robinhood Amid Accelerating Growth

StoneX Financial, the brokerage and equity research arm of StoneX Group, has initiated coverage of Robinhood with a Buy rating and set a price target of $170 for the stock. The move suggests that nearly every operating metric at the company is accelerating.

In a Tuesday research note, Mark Palmer, managing director and senior research analyst at StoneX, highlighted Robinhood's expansion beyond retail trading services as a key growth driver. He noted that the company has been buying its way into exchange and blockchain infrastructure at software margins.

One of the main drivers of growth is the launch of Robinhood Chain, which went live on mainnet on July 1. The chain collected more gas fees over a trailing 24-hour period than any other Ethereum Layer, according to StoneX's report. By September 3, the daily fees reached roughly $4.59 million, and its annualized revenue neared $39 million as of August 29.

StoneX modeled that Robinhood Chain could generate $980 million in revenue by fiscal year 2029 at an 85% margin. The company also highlighted prediction markets as a key growth pillar, with 13.6 billion event contracts traded in the second quarter and over 5 billion contracts traded during the World Cup alone.