Bernstein keeps $130 Robinhood target; implies 58% upside

Bernstein maintained a $130 price target for Robinhood after the company reported first-quarter results. The target implies roughly 58% upside from recent trading levels.

In a research note issued after the Q1 report, Bernstein wrote the shortfall reflected softer trading activity and lower cryptocurrency revenue than expected. The firm left its model assumptions and price target unchanged, stating those near-term weaknesses were already reflected in current share prices.

The $130 target is based on Bernstein’s revenue and margin projections for Robinhood’s core brokerage and crypto businesses. The firm’s model assumes continued progress on measures to increase monetization, including subscription services and interest on customer cash and margin balances.

Robinhood reported first-quarter revenue and engagement that fell short of some analysts’ estimates, prompting a pullback in the stock. Company management pointed to lower trading volumes and a decline in crypto transaction revenue as contributors to the miss.

Bernstein noted those drivers matched its prior expectation for a choppy recovery in engagement after pandemic-era highs. The research note highlighted Robinhood’s product mix-commission-free equities trading, options, fractional shares, subscriptions and crypto-as multiple revenue channels.

The firm’s unchanged target contrasted with more negative investor reactions to the quarterly report and stated that further earnings volatility could affect near-term stock performance. Robinhood, which went public in 2021, remains sensitive to overall market activity, retail trading trends and crypto market conditions.