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Morgan Stanley says Robinhood prediction hub launch supports upward revisions

Morgan Stanley says Robinhood prediction hub launch supports upward revisions

After Robinhood (HOOD) announced the launch of Prediction Markets Hub, a platform built into the Robinhood App that allows customers to trade the outcome of various events, Morgan Stanley analyst Michael Cyprys said the firm views the launch as “a milestone event” that’s not yet in estimates and one that supports upward EPS revisions. To the extent Robinhood can replicate its earlier success from the election contract with a broader event platform, the firm estimates the launch could lead to $260M revenue upside worth 20c, or 14%, to EPS. Morgan Stanley maintains an Overweight rating and $90 price target on Robinhood shares.

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