StoneX Financial initiated coverage on Robinhood with a Buy rating and a $170 price target. Analyst Mark Palmer cited the company's expansion beyond traditional stock and cryptocurrency trading as a primary growth driver.
The report specifically highlighted the potential of Robinhood Chain, the company's Ethereum Layer 2 network. StoneX projects this venture will generate nearly $1 billion in high-margin revenue by 2029.
The firm also noted that a shrinking crypto revenue mix reduces the company's exposure to digital asset volatility.