The retail trading world is facing some uncertainty, but some experts believe the worst is over. On Monday, Bernstein analyst Gautam Chhugani released a new report on Robinhood (HOOD). He kept his Buy rating and set a price target of $130. Even though Chhugani lowered the target slightly, the price target still suggests the stock could jump 95% from its current price of about $66.
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Chhugani Thinks the Stock Is Hitting a Bottom
The move comes as crypto-linked stocks are trading at very low prices, often 60% below their 2025 peaks. Chhugani argues that the current crypto jitters are just a temporary distraction. In his report from today, he wrote that “temporary crypto weak sentiment is offering big discounts on crypto stocks,” creating a rare chance for investors to buy in at a low price.
He is especially positive because Robinhood has grown its business so much that it no longer relies only on crypto. Chhugani noted that “Crypto is mere ~20% of HOOD revenues,” which means the company stays stable thanks to regular stocks, options, and its banking services.
New Betting Markets Are a Huge Opportunity
One of the most exciting parts of today’s report is the growth of “prediction markets,” where people bet on the outcome of real-world events. As traders look for new ways to make money, these contracts are becoming a major source of income for Robinhood. Chhugani believes this area gives the company access to “trillion-dollar markets with years of growth ahead.”
Bernstein expects these new markets to make up a big part of the company’s success in 2026, potentially bringing in 10% of all revenue by the end of the year. Adding these features to its Gold subscription and banking products allows Robinhood to turn into a financial super-app.
Chhugani Long-Term Outlook Stays Strong
While the price target was moved from $160 down to $130 to match the current market mood, Bernstein’s overall view is very positive. Chhugani noted that the firm sees “no point in turning negative on the stock closer to the bottom,” especially since they expect revenue to grow by 30% every year through 2027.
With over 4.2 million Gold subscribers and a massive amount of money being traded on the platform, Robinhood is building a steady stream of cash. Analysts believe this will eventually lead to a big rally.
Is Robinhood Stock a Good Buy?
Turning to TipRanks, Wall Street has a Strong Buy consensus rating on Robinhood stock (HOOD) based on 15 Buy and two Hold ratings. The average 12-month HOOD stock price target of $118.07 indicates 75.7% upside potential.
