• ​Bernstein increased its price target on Robinhood from $130 to $160, maintaining its outperform rating.
• The firm's analysts estimate a boom in Robinhood's prediction market revenue, alongside contributions from perpetual futures and Robinhood Chain.
• HOOD gained over 2% following the price-target increase but erased those gains before the market closed.

Bernstein analysts have raised their price target for Robinhood (HOOD), citing potential growth in the company's prediction market revenue, as well as new revenue streams from perpetual futures and its recently launched Ethereum (ETH) Layer 2, Robinhood Chain.

In a note to investors on Monday, the firm's analysts, led by Gautam Chhugani, raised their target for the exchange's stock from $130 to $160, applying a 2028 calendar-year earnings-per-share estimate of $4.56, 39% higher than the market consensus.

"We maintain a 35x one-year forward price-to-earnings multiple, based on projected revenue, EBITDA, and earnings-per-share compound annual growth rates of 32%, 47%, and 49%, respectively, between 2026 and 2028," Bernstein wrote.

The firm stated that the change is driven by Robinhood's expansion into prediction markets, tokenized equities and perpetual futures. Particularly, it projected revenue from Robinhood's prediction markets business, boosted by the company's Rothera exchange, will hit $1.7 billion by 2028. That reflects a compound annual growth rate (CAGR) of 64% between 2026 and 2028.

Chhugani added that Robinhood and prediction marketplace Kalshi have developed a "frenemy" relationship, as the company has continued to distribute Kalshi's contracts alongside event contracts from its Rothera exchange to users simultaneously.

Robinhood acquired a majority stake in the existing LedgerX exchange in 2025 and rebranded the company to Rothera before launching event contracts in May.

"We model new asset classes, including prediction markets, perpetual futures, and Robinhood Chain, to contribute 18% of total revenue in 2027 and 23% in 2028," Chhugani added.

Robinhood is set to release its Q2 earnings report on July 29, and Bernstein estimates that the company's results will align with market forecasts, adding that prediction-market revenue will offset weakness in its cryptocurrency business.

HOOD climbed above $102 following Bernstein's report but eventually erased those gains, closing at $99.28, a 0.68% decline on Monday.