Bernstein analyst firm has raised its price target for Robinhood (HOOD) stock to $51, up from $30, while maintaining an “outperform” rating on the shares. The update follows the expectation that the trading platform will be a major beneficiary of regulatory changes under a potential pro-crypto U.S. Securities and Exchange Commission (SEC) during a Donald Trump administration.
In early trading, Robinhood’s stock rose by more than 2%, reaching around $36.
Bernstein highlighted that Robinhood has operated within a “regulatory-constrained crypto business,” currently offering just 19 cryptocurrency tokens. The company has also refrained from generating revenue through staking, lending, derivatives, or stablecoins.
However, the analysts believe that a pro-crypto SEC could bring significant changes. “Under a potentially new pro-crypto SEC, this looks set to change, and we expect HOOD to be the biggest beneficiary of crypto regulatory tailwinds,” said analysts led by Gautam Chhugani.
The firm sees Robinhood capitalizing on these regulatory shifts by expanding its crypto offerings, adding more tokens, and introducing new crypto-related products. Bernstein also notes that Robinhood’s acquisition of Bitstamp and its European platform could add further value by enabling services like staking, lending, and stablecoin access.
Recently, Robinhood added Solana (SOL), Pepe (PEPE), Cardano (ADA), and XRP (XRP) to its platform following Trump’s U.S. election victory. The trading platform now supports 19 cryptocurrencies for U.S. clients.
