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Morgan Stanley Foresees a 40% Surge in Robinhood Shares – The Rationale
* Bernstein experts emphasize the application’s swift expansion in crypto-generated earnings.
* Expansion will be driven by three primary sectors: fresh tokens, stablecoins, and staking.
* Morgan Stanley mirrors the same catalysts but establishes a projected share value of $90.
Experts are optimistic regarding Robinhood!
Morgan Stanley experts have elevated their projected share value to $90 – a full 40% above their prior projection.
Bernstein analysts doubled their objective for the firm’s stock, targeting $105 by the close of 2026 – a substantial increase from the prior $51.
The experts also anticipate that organizations will venture into the crypto sphere through Robinhood’s incorporation with indigenous crypto platforms.
As per both groups of experts, Robinhood is poised to gain from three crucial domains: fresh token listings – envision 20 to 30 tokens from DeFi, AI, and even memecoins – staking offerings, and stablecoins.
Bernstein analyst Gautam Chhugani stated in a memo to investors on Wednesday: “Robinhood is constructing a global financial environment spanning asset classes – equities, crypto, tokenized securities, stablecoins, prediction markets.”
Bernstein analysts propose that this positive forecast is contingent on Trump’s pro-crypto position, with his campaign slogan “drawing in more traders pursuing crypto price fluctuations.”
Robinhood witnessed remarkable growth in its crypto division in the final quarter of 2024.
The firm also disclosed a cool $1 billion in quarterly sales in the final quarter of 2024, with crypto transaction earnings soaring nearly sixfold within the same timeframe.
Bitcoin soared – reaching a peak of $108,000 – when the president made crypto a central theme of his campaign. Toncoin (TON) Value Forecast for March 26th
Crypto trading now constitutes a staggering 53% of Robinhood’s transaction earnings, up from 20% in the preceding quarter.
## The Trump Effect
Both groups of analysts foresee that Robinhood will persist in benefiting from Donald Trump’s new governance.
As per market analysts at Morgan Stanley, Robinhood could adopt a more forward-looking approach within the digital currency domain, possibly opening up new income opportunities, driven by a more advantageous regulatory environment within the United States.
Vlad Tenev, Robinhood’s co-creator and Chief Executive Officer, noted that should the Trump government deliver on its commitment to more transparent digital currency regulations, the firm’s initiatives to back a broader selection of virtual currency tokens would gather pace.
Although certain observers, such as Arthur Hayes, express reservations regarding Trump’s preliminary actions, experts at Bernstein are confidently projecting that Bitcoin may reach $200,000 before the year concludes.
Additional individuals hold even more optimistic views, with Larry Fink of BlackRock establishing a target valuation of $700,000 for Bitcoin, and Standard Chartered experts anticipating a valuation of $500,000 for each coin.
