The firm highlights Robinhood’s (NASDAQ:HOOD) unique position to capitalize on a potentially pro-crypto SEC under a Trump administration, which could clear the path for significant revenue growth.
Despite its share price already surging 170% year-to-date, Bernstein sees further upside.
“HOOD has so far operated a regulatory-constrained crypto business,” the analysts noted, listing only 15 tokens compared to over 250 on Coinbase.
They note that the current SEC’s hawkish stance has limited Robinhood’s ability to monetize its crypto offerings through staking, lending, and other revenue-generating services.
This could change as Bernstein anticipates regulatory tailwinds under a pro-crypto environment, enabling Robinhood to expand its token listings and introduce new crypto revenue streams.
Recently, Robinhood added four tokens, including SOL, ADA, XRP, and PEPE, bringing its total to 19—a move viewed as a precursor to further expansion.
Bernstein estimates a 20% increase in Robinhood’s 2025 crypto revenue compared to prior forecasts, driven by market share gains and the rollout of new services.
The company’s acquisition of Bitstamp and the launch of its EU crypto platform are also expected to accelerate its entry into staking, stablecoin access, and lending.
The analysts project Robinhood’s 2025 revenues to reach $4.19 billion, with over $1.3 billion in earnings as the company leverages its predominantly fixed operating costs.
Bernstein values Robinhood at 10.8x its 2025 revenues and 33x its 2025 earnings, reflecting the average multiples for crypto and fintech peers.
With crypto deregulation on the horizon, Bernstein concludes that they “expect HOOD to be the biggest beneficiary of crypto regulatory tailwinds,” offering a potential 46% upside from current levels.
Source: Cryptocurrency - investing.com
