Citizens JMP has raised its price target for Robinhood Markets (NASDAQ: HOOD) to $165 from $155 while maintaining a Market Outperform rating. With the stock trading at $113.33 at the time of the update, the new target represented approximately 46% potential upside.

The revised target is tied in part to expectations for Robinhood Chain, the company’s blockchain platform. Citizens JMP is modeling approximately $1 million in net chain revenue per day in 2027, or about $365 million for the full year. Its estimate assumes Robinhood reaches the 85% revenue-sharing tier by that time, which would correspond to approximately $1.2 million per day in underlying sequencer revenue.

That projected sequencer revenue is about 65% below the $3.3 million average daily pace recorded during the seven days ended September 8. Citizens JMP noted that Labor Day likely boosted activity during that period and said it was not carrying that pace forward in its projections. The disclosed assumptions therefore place emphasis on Robinhood Chain’s eventual revenue-sharing tier and the sustainability of sequencer activity rather than on the short-term holiday-affected pace alone.

The $165 price target is based on a valuation of roughly 30 times enterprise value to 2027 adjusted EBITDA, supported by a long-term discounted cash flow analysis. Robinhood’s current price-to-earnings ratio is around 50.

Other Analyst Price Target Changes

Several other firms have also recently raised their Robinhood targets. Mizuho increased its target to $140, citing expectations related to artificial intelligence-focused initial public offerings. Jefferies raised its target to $140 following meetings with Robinhood’s chief financial officer. Goldman Sachs moved its target to $142, pointing to growth in Robinhood’s prediction-market business.

Bernstein maintained its Outperform rating and set a $160 target. The firm identified Robinhood’s blockchain platform as a Top 5 chain across several metrics.

According to MarketBeat, the consensus analyst rating is Moderate Buy, with an average price target of $129.83. Of the 27 analysts tracked, 23 rate the stock Buy, one rates it Strong Buy, and three rate it Hold.

Robinhood’s latest quarterly results also exceeded analyst estimates. The company reported earnings per share of $0.62, compared with the consensus estimate of $0.44, a beat of $0.18. Revenue reached $1.31 billion, exceeding the $1.29 billion estimate and increasing 32.5% from the same quarter a year earlier. Net margin was 42.01%.

Prediction Markets and Business Expansion

In addition to its blockchain initiative, Robinhood is expanding in prediction markets. The company reported 15-fold year-over-year growth in event contracts and announced agreements with Crypto.com and OG.com to broaden distribution. These developments make event-contract activity and distribution expansion additional disclosed areas to monitor alongside the blockchain revenue assumptions.

Robinhood CEO Vlad Tenev has also said the company plans to expand its underwriting business following the Oura IPO.

The company faces challenges in some areas. Robinhood is withdrawing sports prediction markets in Michigan because of a lawsuit. Its tokenized stock strategy has also received public criticism from Adam Aron, the CEO of AMC.

Insiders sold 570,260 stock units worth approximately $64.1 million during the past 90 days. All of those sales were conducted under pre-arranged Rule 10b5-1 plans. Institutional investors hold 93.27% of Robinhood’s shares.

The stock’s 52-week range is $63.51 to $153.86, and the company has an approximate market capitalization of $101.89 billion.

Source: CoinCentral