Key Takeaways
- HOOD shares climbed 16.6% on Thursday, reaching $124.72, marking the highest closing price since December 10.
- Morgan Stanley elevated HOOD to Overweight with a $150 price target; Scotiabank launched coverage at Sector Outperform targeting $136.
- Piper Sandler boosted its target to $145, highlighting robust prediction market activity ahead of football season.
- Deutsche Bank increased its HOOD forecast to $136 from $115, emphasizing Robinhood Chain as a significant catalyst.
- Total Value Locked on Robinhood Chain surged 27% over seven days to reach $840 million, with fee generation surpassing Ethereum, Solana, and other prominent networks in the last 24 hours.
Thursday marked an exceptional trading session for Robinhood shares, with the stock surging 16.6% to settle at $124.72. This represents the highest closing value since mid-December and follows a wave of optimistic analyst assessments from major financial institutions.
The rally began with Morgan Stanley’s Michael Cyprys upgrading HOOD to Overweight from Equal-weight on September 1, while simultaneously elevating his price objective to $150 from $124. Cyprys highlighted how the company’s product diversification strategy is translating into improved customer value metrics.
“Customer assets have increased 23% compared to last year,” Cyprys noted, emphasizing that Robinhood’s expanded product suite encourages users to consolidate their assets on the platform as their portfolios grow.
Separately, Scotiabank’s Lance Jessurun launched coverage on September 1 with a Sector Outperform designation and $136 price target. Jessurun contends that investors continue to undervalue Robinhood by viewing it merely as a retail brokerage, when in reality the firm generates income from five separate revenue channels, with four showing less volatility than traditional trading commissions.
Betting Markets Expected to Drive Significant Growth
Patrick Moley from Piper Sandler increased his price projection to $145 from $135 while maintaining an Overweight stance. He identified prediction market activity as a compelling growth opportunity with NFL and college football seasons approaching.
Moley’s baseline forecast anticipates Robinhood users will trade approximately 29.7 billion event contracts between September and December 2026, potentially delivering roughly $320 million in prediction market earnings during that timeframe.
Notably, Augustātraditionally a quiet month for sports wageringādemonstrated solid volume, partially supported by World Cup activity. The upcoming football season is anticipated to provide substantially stronger momentum.
Deutsche Bank joined the chorus of positive voices, upgrading its HOOD price objective to $136 from $115. The investment bank highlighted the company’s layer-2 blockchain infrastructure, Robinhood Chain, as a substantial growth opportunity.
Blockchain Network Shows Explosive Early Momentum
Despite launching under two months ago, Robinhood Chain is already generating impressive metrics. The network’s Total Value Locked increased nearly 27% during the past week to reach $840 million, based on DeFiLlama tracking data.
In the most recent 24-hour period, the platform generated $4.59 million in fees, outpacing established networks including Ethereum, Solana, BNB, Avalanche, and multiple prominent layer-2 solutions such as Base and Arbitrum.
Industry observer The Milk Road highlighted that when annualized, Robinhood Chain’s seven-day revenue performance positions it as the fourth-largest contributor among the company’s 14 distinct revenue categories.
In addition to blockchain developments, Robinhood disclosed that users have deposited approximately $150 million into recently launched trust accounts, with typical account balances exceeding $500,000.
The company’s premium tier, Robinhood Gold, achieved an all-time high of 4.8 million paying subscribers during the second quarter.
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