The broker raised its price target on the stock to $51 from $30 while maintaining its outperform rating on the shares.
Robinhood (HOOD) is set to be the biggest beneficiary of regulatory tailwinds from a potentially pro-crypto U.S. Securities and Exchange Commission (SEC) under a Donald Trump administration, broker Bernstein said in a research report Wednesday.
The broker raised its price target for the popular trading platform to $51 from $30 while maintaining its outperform rating on the shares. The stock was more than 2% higher at around $36 in early trading.
Bernstein noted that Robinhood has operated a “regulatory-constrained crypto business” and has listed only 19 cryptocurrency tokens to date. The California-based company has made no revenue from staking, lending, derivatives or stablecoins.
“But under a potentially new pro-crypto SEC, this looks set to change, and we expect HOOD to be the biggest beneficiary of crypto regulatory tailwinds,” analysts led by Gautam Chhugani wrote.
The trading app can drive higher revenues by listing new tokens and introducing new crypto product lines to target the wider opportunity, the authors wrote.
Robinhood’s acquisition of Bitstamp and its European platform should “further boost value added crypto services,” the authors wrote, as exchanges can offer staking, stablecoin access and lending.
The trading platform added solana (SOL), pepe (PEPE), cardano (ADA) and XRP (XRP) last week following Trump’s win in the U.S. presidential election, and now offers trading in 19 cryptocurrencies for American clients.
Related
Source: Vietnam Insider