Morgan Stanley upgrades Robinhood, boosting stock and setting $150 price target

Morgan Stanley upgraded Robinhood Markets to Overweight from Equal-weight, raising its price target to $150 from $124 and pointing to roughly 43% upside, a move the firm attributed to the brokerage's expanding product suite and its ability to monetize an already large customer base beyond crypto trading. Robinhood shares rose as much as 2.4% in premarket trading following the announcement.

The upgrade centers on Robinhood's push into products beyond crypto, including prediction markets and other newer trading tools, which Morgan Stanley analyst Michael Cyprys argues the market has not fully priced in. Cyprys raised his 2026 to 2028 earnings estimates by 12% to 15%, framing the case as a longer growth runway from deeper monetization of Robinhood's existing roughly 28 million customers rather than a rebound in crypto activity specifically.

Investors responded positively to the premarket move. The $150 target represents a sizable premium over Robinhood's recent trading range, and Morgan Stanley's note points to assets per customer growing 23% year over year and a set of newer business lines, including prediction markets, that could keep contributing to revenue even if crypto trading stays soft.

Analysts will likely watch how Robinhood executes on this broader product roadmap and whether it can sustain revenue growth outside crypto. Further upgrades or price-target adjustments could hinge on the company's coming quarterly results and how quickly the newer product lines scale.

Related Stocks

• MS
• MSTR