Predicting market revenue or surpassing cryptocurrency businesses! Robinhood (HOOD.US) welcomes a "cross-era" platform transformation, with multiple investment banks giving it a "buy" rating.

Investment banks Bernstein and Piper Sandler analysts stated this week that trading platform Robinhood (HOOD.US) could potentially surpass cryptocurrency trading revenue from the forecast market as early as the second quarter. Bernstein analyst Gautham Chagani wrote in a report to clients on Monday that the three months leading up to June could be the first quarter where "forecast market revenue exceeds cryptocurrency." Chagani, who maintains a "buy" rating on the stock, raised Robinhood's target price to the highest on Wall Street, from $130 to $160, to reflect new market opportunities. In addition, Piper Sandler analyst Patrick Moorley stated that his forecasting model also reflects a similar view, with revenue from the forecast market surpassing cryptocurrency in the second quarter and the remaining two quarters of the year. In recent months, analysts have emphasized the shift of exchanges like Robinhood, Coinbase, and Gemini Space Station Inc. towards the forecast market, while cryptocurrency trading has declined. The decline in cryptocurrency trading comes as Bitcoin prices continue to drop to levels not seen since 2024. Meanwhile, the FIFA World Cup has become a major catalyst, sparking investor interest in the forecast market. Chagani of Bernstein said that with the World Cup now over, "a modest market reversal is to be expected", however, the market may be "missing a generational shift in the trading market". He predicts that with Robinhood expanding its partnership with Rothera, its forecast market revenue will reach $1.7 billion by 2028, a 64% increase from 2026. Rothera is a newcomer to the forecast market, starting to accept bets in May. The startup Rothera is a joint venture between Robinhood and Susquehanna International Group, with its former owner, Miami International Holdings Inc., retaining a minority stake. According to the model built by Bernstein analysts, new asset categories including the forecast market, perpetual contracts, and Robinhood Chain will contribute 18% to the company's estimated revenue in 2027 and 23% in 2028. Needham analyst John Todaro raised Robinhood's target price from $97 to $123 on Tuesday and gave a "buy" rating. The analyst noted that the company has shown sustained strength in nearly all metrics, with the latest monthly data showing accelerated growth in stocks, options, and event contracts, as well as a rebound in cryptocurrency activity. Data shows that Robinhood is scheduled to announce its second-quarter performance on July 29, with analysts expecting adjusted profits to grow by about 4% year-on-year, and revenue to surge by 28%.