Investment banking firm Citizens JMP raised its price target for Robinhood (HOOD) stock to $165 from $155, maintaining a "Market Outperform" rating. The updated outlook reflects growing expectations for the company's blockchain initiatives, particularly its Robinhood Chain platform.
According to the analyst, Robinhood Chain could contribute approximately $1 million in net revenue per day once reflected in the company's 2027 estimates, translating to roughly $365 million in annual revenue. Citizens JMP increased its 2027 estimates to account for this contribution from the blockchain platform.
Robinhood Chain has recently reached a level of activity substantial enough to be incorporated explicitly into financial forecasts. The analyst noted that this marks a potentially significant new revenue stream for the online brokerage firm.
Activity and Risk Considerations
The analyst cautioned that chain-related revenue is expected to remain volatile. The recent surge in activity may not persist at the same pace, meaning the forecast assumes an initial contribution rather than a continuation of current activity levels at constant rates.
Robinhood has positioned itself at the intersection of traditional investing and crypto markets, providing exposure to changes in digital-asset trading activity. A successful Robinhood Chain could strengthen that positioning while creating an additional source of transaction-related revenue.
The $165 price target highlights potential upside analysts see in the company's broader growth strategy. The forecast also underscores a key risk: a substantial portion of projected blockchain revenue depends on sustained user activity and transaction volumes.
Other Wall Street analysts have recently raised price targets for Robinhood stock as well, with StoneX raising its target to $170 for HOOD stock.
