Key facts
- Bernstein raised its price target on Robinhood (HOOD) stock to $160 from $130.
- The firm maintained an Outperform rating on HOOD stock.
- Bernstein predicts prediction markets will drive Robinhood's growth, forecasting $1.7 billion in segment revenue by 2028.
- Tokenized equities are identified as a major long-term opportunity, with Robinhood Chain serving as its blockchain infrastructure.
- The value of onchain real-world assets is projected to reach $2 trillion-$4 trillion by 2030.
- Alpaca and Broadridge integrated governance tools for tokenized securities, including proxy voting and investor communications.
Bernstein analysts have increased their price target for Robinhood Markets (HOOD) stock to $160 from $130, maintaining an Outperform rating. The firm's updated investment thesis posits that Robinhood's future growth will stem from tokenized equities and prediction markets, rather than solely traditional cryptocurrency trading.
Bernstein forecasts that prediction markets will become Robinhood's fastest-growing segment, projecting revenue to reach $1.7 billion by 2028, which represents a 64% compound annual growth rate. The firm also views tokenized equities as a significant long-term opportunity, citing Robinhood's investment in blockchain infrastructure, including Robinhood Chain, its Arbitrum-based layer-2 network designed for tokenized real-world assets.
The analysts believe tokenization is becoming a foundational element for capital markets, estimating that the value of onchain real-world assets could grow from approximately $35 billion currently to between $2 trillion and $4 trillion by 2030. They anticipate tokenized equities will capture an increasing share of this growth.
This development occurs as financial institutions are expanding their infrastructure for tokenized securities. Alpaca and Broadridge Financial Solutions announced an integration of governance tools for tokenized securities, enabling features like proxy voting and regulatory disclosures. Separately, Securitize and Cantor Fitzgerald are partnering to develop infrastructure for blockchain-based initial public offerings and follow-on equity offerings within existing U.S. regulations. The market value of tokenized stocks has reportedly grown to nearly $2 billion this year.