Robinhood Markets (Nasdaq: HOOD) is a Menlo Park, California-based e-trading brokerage platform that is best-known for its stock, cryptocurrency, and tokenized stock offerings. Founded by Sta
Robinhood Markets (Nasdaq: HOOD) is a Menlo Park, California-based e-trading brokerage platform that is best-known for its stock, cryptocurrency, and tokenized stock offerings.
Founded by Stanford graduates Vladimir Tenev and Baiju Bhatt in 2013, the exchange has become popular among retail traders due to its commission-free offerings.
Related: Why is Robinhood surging on June 10?
The company's stock hasn't been performing well for the past few months due to the broader downturn in the crypto market. In fact, the HOOD stock has lost more than 20% this year.
But an analyst has raised its price target on its stock owing to a new product.
Cantor Fitzgerald hiked the price target on Robinhood from $100 to $110 and kept an Overweight rating on the shares, Investing.com reported on June 10.
The analyst said it made the decision based on Robinhood's joint venture with Susquehanna regarding Rothera.
Rothera is a Commodity Futures Trading Commission (CFTC)-regulated prediction market exchange and clearinghouse which is independently managed through Robinhood’s joint venture with Susquehanna International Group.
Robinhood recently announced that users can now trade the 2026 World Cup event contracts on Rothera.
“The World Cup is a global phenomenon and is the perfect event to launch Rothera,” said JB Mackenzie, VP and GM of Futures and Prediction Markets at Robinhood.
"We’re now delivering even more value for customers as we continue on our mission to make Robinhood the best place to trade prediction markets.”
Cantor Fitzgerald said Rothera will enable Robinhood to better monetize prediction market volumes.
Robinhood currently earns retail brokerage economics on prediction market volumes while third-party provider Kalshi captures the underlying exchange economics. The analyst expects Rothera to capture the majority of prediction economics over time.
Cantor Fitzgerald's new price target of $110 is based on 27 times Robinhood’s fiscal 2027 adjusted EBITDA estimate of $3.42 billion plus a discounted cash flow analysis, equally weighted.
The HOOD stock was trading at $88 at the time of writing, up 5% today.
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