StoneX Initiates Coverage of Robinhood with Buy Rating and Target Price of $170

StoneX analyst Mark Palmer has initiated coverage of Robinhood with a buy rating and a target price of $170, implying an upside of approximately 45% from Tuesday's closing price of $117.34. Palmer noted that Robinhood is expanding from retail trading services to acquire exchanges and blockchain infrastructure with software profit margins. The Robinhood Chain launched its mainnet on July 1, generating more gas fee revenue in the past 24 hours than all other Ethereum Layer 2 solutions combined. As of September 3, the chain's daily fee revenue was approximately $4.59 million, with an annualized revenue close to $39 million as of August 29. StoneX predicts that the Robinhood Chain could generate $980 million in revenue by fiscal year 2029, with a profit margin of 85%. In the prediction market, Robinhood traded 13.6 billion event contracts in the second quarter, exceeding 5 billion during the World Cup alone, generating approximately $156 million in revenue, a 50% quarter-over-quarter increase. On Tuesday, Robinhood announced a partnership with Crypto.com and OG.com, investing in both companies and routing some event contracts to OG.com. Previously, Bernstein analysts also maintained an outperform rating on Robinhood with a target price of $160.