Morgan Stanley Upgrades Robinhood To Overweight, Raises Price Target To $150

According to CNBC, Morgan Stanley upgraded Robinhood Markets to overweight from equal weight and raised its price target to $150 from $124, implying 43% upside from Monday's close. Analyst Michael Cyprys said the market is underestimating Robinhood's ability to monetize its existing user base, noting that the company's expanding platform is driving more assets, activity and revenue per customer. He said Robinhood's move into new trading products should help it generate more revenue from its roughly 28 million users. Cyprys also pointed to prediction markets as evidence of the platform's reach, saying fewer than 2 million users generated $156 million of second-quarter revenue and adopted other products. He added that Robinhood's derivatives exchange and clearinghouse, Rothera, extends the company's distribution advantage into infrastructure and adds exchange economics on its own flow and potential third-party revenue.