One on-line brokerage agency emerged as Bernstein's prime choose to learn from potential cryptocurrency deregulation, with analysts elevating their value goal on the inventory to $51 from $30 in a observe this week.
The agency highlights Robinhood's (NASDAQ: ) distinctive place to learn from a doubtlessly pro-crypto SEC below the Trump administration, which might pave the way in which for important income progress.
Regardless of the inventory value already up 170% year-to-date, Bernstein sees extra upside.
“HOOD has thus far operated a regulatory restricted crypto enterprise,” the analysts famous, citing solely 15 tokens in comparison with greater than 250 on Coinbase.
They observe that the SEC's present hawkish stance limits Robinhood's means to monetize its cryptocurrency choices by betting, lending and different revenue-generating companies.
That might change as Bernstein anticipates regulatory tailwinds within the cryptocurrency panorama, permitting Robinhood to broaden its token listings and introduce new streams of cryptocurrency income.
Not too long ago, Robinhood added 4 tokens, together with SOL, ADA, XRP and PEPE, bringing its complete to 19 – a transfer seen as an indication of additional growth.
Bernstein estimates a 20% improve in Robinhood's cryptocurrency income in 2025 in comparison with earlier forecasts, because of a rise in market share and the introduction of recent companies.
The acquisition of Bitstamp and the launch of its EU crypto platform is predicted to speed up its entry into staking, stablecoin entry and lending.
Analysts forecast Robinhood's income to achieve $4.19 billion in 2025, with greater than $1.3 billion in revenue as the corporate leverages its principally mounted working prices.
Bernstein values Robinhood at 10.8 instances its 2025 gross sales and 33 instances its 2025 earnings, reflecting common multiples for crypto and fintech friends.
With cryptocurrency deregulation on the horizon, Bernstein concludes that they “anticipate HOOD to be the largest beneficiary of crypto-regulatory tailwinds,” providing a possible 46% upside from present ranges.
