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Robinhood Is the Top Crypto Deregulation Trade, Bernstein Says

The broker raised its price target on the stock to $51 from $30 while maintaining its outperform rating on the shares.

Por Will Canny|Editado por Sheldon Reback
Actualizado 20 nov 2024, 9:44 a. .m.. Publicado 20 nov 2024, 9:41 a. .m.. Traducido por IA
Robinhood is the top crypto deregulation trade, Bernstein says. (Shutterstock)
Robinhood is the top crypto deregulation trade, Bernstein says. (Shutterstock)
  • Robinhood is expected to benefit the most from crypto deregulation in the U.S., the report said.
  • Bernstein raised its price target for the trading platform to $51 from $30.
  • The company's acquisition of crypto exchange Bitstamp is expected to boost the value-added crypto services it can offer, the broker said.

Robinhood (HOOD) is set to be the biggest beneficiary of regulatory tailwinds from a potentially pro-crypto U.S. Securities and Exchange Commission (SEC) under a Donald Trump administration, broker Bernstein said in a research report Wednesday.

The broker raised its price target for the popular trading platform to $51 from $30 while maintaining its outperform rating on the shares. The stock was more than 2% higher at around $36 in early trading.

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Bernstein noted that Robinhood has operated a "regulatory-constrained crypto business" and has listed only 19 cryptocurrency tokens to date. The California-based company has made no revenue from staking, lending, derivatives or stablecoins.

"But 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," analysts led by Gautam Chhugani wrote.

The trading app can drive higher revenues by listing new tokens and introducing new crypto product lines to target the wider opportunity, the authors wrote.

Robinhood's acquisition of Bitstamp and its European platform should "further boost value added crypto services," the authors wrote, as exchanges can offer staking, stablecoin access and lending.

The trading platform added solana , pepe , cardano and XRP last week following Trump's win in the U.S. presidential election, and now offers trading in 19 cryptocurrencies for American clients.

Read more: Robinhood Adds SOL, PEPE, ADA, XRP Following Trump Victory




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