Robinhood to Benefit From ‘Monster’ Crypto Cycle, Initiated Outperform by Bernstein

Bernstein has initiated coverage of Robinhood (HOOD), a trading platform, with an outperform rating and a price target of $30. The main reason for this bullish call is the predicted “monster” crypto cycle, as stated in a research report by the broker. Bernstein expects the total market capitalization of cryptocurrencies to grow nearly threefold to $7.5 trillion by 2025. They also anticipate bitcoin spot ETF assets under management to potentially reach $300 billion by 2025. They believe that the crypto market is experiencing unprecedented institutional adoption, with Robinhood’s crypto revenue projected to increase significantly. Overall, Bernstein views Robinhood as a two-year cyclical trade, benefiting from the crypto-led earnings uptick over 2024-25. Following this news, Robinhood’s shares experienced a more than 10% increase in after-hours trading.