Analysts at Bernstein have raised their price target on Robinhood Markets, based on their investment thesis that the online brokerage’s next phase of growth will be driven by tokenized equities and prediction markets rather than traditional crypto trading.
In a Monday research note, Bernstein raised its price target on Robinhood (HOOD) stock to $160 from $130 per share and maintained its Outperform rating. HOOD stock was last seen trading around $101.
The analysts said prediction markets are poised to become Robinhood’s fastest-growing business, forecasting segment revenue to reach $1.7 billion by 2028, representing a 64% compound annual growth rate.
Beyond prediction markets, Bernstein identified tokenized equities as a major long-term opportunity, pointing to Robinhood’s investment in blockchain infrastructure. The firm highlighted Robinhood Chain, the company’s Arbitrum-based layer-2 network, as its proprietary infrastructure for tokenized real-world assets, enabling the platform to build on-chain financial products without relying on third-party blockchains.
Bernstein said that tokenization is emerging as a foundational layer for capital markets, projecting that the value of onchain real-world assets will grow to between $2 trillion and $4 trillion by 2030 from roughly $35 billion today. The analysts expect tokenized equities to account for an increasing share of that growth as adoption expands beyond Treasury securities and private credit.
Robinhood is competing across key “battleground” asset classes, including prediction markets, perpetual futures and tokenized RWAs. Source: Bernstein
Related: Tradable’s $1B Stellar deal adds to institutional tokenization boom
Wall Street expands tokenization infrastructure
The Bernstein report comes as financial institutions continue to expand infrastructure for tokenized securities.
On Monday, brokerage infrastructure provider Alpaca and financial technology company Broadridge Financial Solutions announced they had integrated Broadridge’s shareholder governance tools into Alpaca’s Instant Tokenization Network. The integration adds capabilities such as proxy voting, investor communications and regulatory disclosures for tokenized securities, aiming to give token holders governance rights comparable to those of traditional shareholders.
The announcement follows last week’s partnership between tokenization platform Securitize and investment bank Cantor Fitzgerald to develop infrastructure for blockchain-based initial public offerings and follow-on equity offerings within existing US securities regulations.
The institutional push comes as tokenized stocks continue to gain traction. The asset class has grown to nearly $2 billion in market value this year, according to RWA.xyz.
Related: Crypto Biz: When dollars disappear, stablecoins step in