Robinhood (HOOD) is positioned to become the primary beneficiary of a more crypto-friendly regulatory environment, according to a report by Bernstein, which raised its price target for the stock to $51, up from $30, while maintaining its “outperform” rating. The move comes as the broker anticipates that a pro-crypto shift at the U.S. Securities and Exchange Commission (SEC), potentially under a Donald Trump administration, will allow Robinhood to expand its cryptocurrency offerings significantly.
In early trading, Robinhood shares were up by more than 2%, reaching approximately $36 per share.
The analysts at Bernstein pointed out that Robinhood’s crypto business has been constrained by regulations, with the platform currently offering only 19 digital assets and lacking revenue streams from products like staking, lending, or stablecoins. However, with a potentially favorable regulatory landscape, Bernstein expects Robinhood to tap into new opportunities in the crypto space, driving higher revenues through the addition of new tokens and more diversified crypto product lines.
Furthermore, Robinhood’s acquisition of the Bitstamp exchange and its European platform is expected to strengthen its position in providing value-added crypto services, such as staking and lending.
Recently, Robinhood added a range of popular cryptocurrencies, including Solana (SOL), Pepe (PEPE), Cardano (ADA), and XRP (XRP), in the wake of Trump’s election win, expanding its crypto offerings to 19 tokens for U.S. customers.
