Bernstein: Robinhood poised to gain most from SEC policy change
Bernstein raised its target price on Robinhood shares from $30 to $51
Analysts at Bernstein have identified Robinhood as a key beneficiary of the anticipated changes to cryptocurrency regulation in the US.
Bernstein raised its target price on Robinhood shares from $30 to $51, citing its strategic positioning and innovative offerings in the digital asset space, Сoindesk informs.
Analysts say the platform's optimized structure and robust user base allow it to capitalize on the opportunity, especially as the U.S. Securities and Exchange Commission (SEC) may shift to a more cryptocurrency-friendly policy after Trump's victory.
Crypto expansion amplifies Robinhood’s appeal
Robinhood’s acquisition of cryptocurrency exchange Bitstamp underscores its commitment to expanding value-added crypto services. By integrating Bitstamp’s infrastructure, the platform is expected to bolster its crypto trading capabilities, offering enhanced liquidity and access to a broader range of digital assets. This move aligns with Bernstein’s projection that Robinhood is uniquely positioned to capitalize on growing demand for simplified yet comprehensive crypto investment platforms.
Analysts also raised their target price for shares of the popular trading platform from $30 to $51, while maintaining an above-average rating on the stock. The stock rose more than 2% to $36 in early trading.
Previously, Robinhood based its operations on “limited regulation of crypto businesses” and only introduced 19 cryptocurrency tokens, generating no revenue from steaking, lending, derivatives or stablecoins.
However, analysts are confident that with a potentially new pro-cryptocurrency SEC policy, things will change and Robinhood will become the largest “beneficiary of cryptocurrency regulation.”
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.
Looking Ahead: crypto and beyond
As regulatory clarity improves, Robinhood’s potential to lead in the crypto market could translate into broader institutional adoption of its platform. Bernstein’s bullish outlook reflects confidence not only in Robinhood’s crypto expansion but also in its ability to navigate and benefit from the broader financial policy environment.
Robinhood’s stock has already responded positively to these developments, reflecting investor optimism about its strategic direction.
Also Previously, CEO of Robinhood has previously stated that the UK is tough on cryptocurrencies.
