Morgan Stanley Upgrades Robinhood, Raises Target to $150

Robinhood Markets (NASDAQ: HOOD) shares rose about 2.4% in premarket trading on Tuesday, September 1, 2026, after Morgan Stanley upgraded the stock to Overweight from Equal-weight and lifted its price target to $150 from $124, implying roughly 43% upside from recent levels, as reported by MarketWatch and TipRanks. Analyst Michael Cyprys highlighted improving customer economics and multiple revenue streams from the existing user base.

Morgan Stanley Lifts Robinhood Target to $150, Sees 23% Revenue CAGR to $8B

Morgan Stanley analyst Michael Cyprys raised 2026–2028 earnings estimates by 12% to 15%. The bank now forecasts a 23% revenue compound annual growth rate through 2028 to $8.0 billion (about 6% above consensus) and expects EBITDA margins to expand to 53% from 48% through expense discipline.

Key metrics cited include assets per customer up 23% year-over-year and Gold users holding approximately 4.2 times the average customer’s assets under custody. Robinhood has 28 million customers, with 13 business lines each generating more than $100 million in annualized revenue. Prediction markets alone produced $156 million in second-quarter revenue from fewer than 2 million users.

The $150 target applies a 25 times multiple to 2031 probability-weighted earnings. Shares closed the prior session near $104.81.

Investors Back Morgan Stanley Upgrade on Stronger Product-Driven Growth

Investors responded positively to the upgrade because it emphasizes sustainable growth from the existing customer base rather than reliance on new funded accounts or crypto trading volumes. Morgan Stanley argued that product expansion (retirement, credit card, advisory, banking, Gold and prediction markets) is driving higher assets, activity and monetization per user, extending the growth runway. The higher earnings forecasts and margin outlook provided concrete support for the raised target.

Robinhood: Diversified Platform with $125–$126 Consensus Target and $63–$154 52-Week Range

Robinhood has evolved from a commission-free trading app into a broader financial platform. While crypto activity has softened, the company has diversified into active-trader tools, event contracts/prediction markets and wealth products. Consensus price targets prior to the upgrade averaged around $125–$126. Other firms such as Bernstein have maintained higher targets (up to $160). The stock has been volatile, with a 52-week range spanning roughly $63–$154.

Near-Term Catalysts and Growth Drivers 

Key near-term catalysts flagged by Morgan Stanley include the HOOD Summit on September 29–30, along with developments in Rothera, perpetual futures and agentic trading features. Investors will monitor upcoming quarterly results for continued growth in assets per customer, prediction-market traction and margin expansion. Any broader retail-trading environment recovery or further product launches could provide additional upside.