StoneX Financial, the equity research and brokerage division of StoneX Group, has assigned a Buy rating to Robinhood alongside a $170 price target, pointing to its fresh Layer 2 network and prediction markets venture as primary catalysts for expansion.
During Tuesday’s research publication launching coverage on Robinhood, Mark Palmer, senior research analyst and managing director at StoneX, noted that virtually every metric concerning the firm’s operations is accelerating.
Robinhood equities (HOOD) finished Tuesday down 3.91%, settling at $117.34. The valuation target set by StoneX suggests a potential upside of approximately 45% compared to current trading values.
Palmer stated that Robinhood experienced a 32% year-over-year increase in second-quarter revenue, reaching $1.31 billion, while digital asset revenue dropped 38%, reducing cryptocurrency’s share of net revenue to 8% down from 16% during the previous year.
Furthermore, Palmer drew attention to Robinhood’s diversification beyond standard retail brokerage services. He documented that the firm has actively acquired exchange and blockchain infrastructure operations yielding software-level profit margins. According to the analysis, the Robinhood Chain, which launched its mainnet on July 1, has successfully accumulated higher gas fees over a single 24-hour window than any competing Ethereum Layer network.
The network’s daily transaction fees climbed to roughly $4.59 million by September 3, with annualized revenue approaching $39 million as of August 29. Additionally, StoneX projections indicate the Robinhood Chain could yield $980 million in revenue by the 2029 fiscal year, maintaining an 85% profit margin.
Prediction markets
Prediction markets were similarly singled out by StoneX as a major pillar for future development. Throughout the second quarter, Robinhood recorded 13.6 billion event contracts exchanged, while the World Cup alone accounted for over 5 billion traded contracts. This activity generated approximately $156 million in revenue, marking a 50% jump compared to the preceding quarter.
On Tuesday, Robinhood disclosed a partnership agreement with both Crypto.com and OG.com aimed at broadening its prediction market portfolio. Robinhood confirmed it will secure equity positions in both entities while directing specific event contracts toward OG.com.
JB Mackenzie, vice president and general manager of prediction markets and futures at Robinhood, remarked in a Tuesday statement that directing event contracts across various platforms fosters a more robust, varied, and durable marketplace. He added that with the return of football and midterm elections approaching quickly, the company is excited to partner with Crypto.com and OG.com ahead of an anticipated active autumn for Robinhood prediction markets.
Earlier in the week, analysts at Bernstein likewise sustained an Outperform evaluation and a $160 price target for Robinhood, signaling roughly a 31% upside relative to Tuesday’s closing valuation.
Originally published at https://www.theblock.co/news/business/2026-09-08-stonex-sees-upside-robinhood-413955.
