Following a recent research note released by the broker on Thursday, Bernstein began covering the trading platform Robinhood (HOOD) with an outperform rating and a $30 price target. The firm attributed the bullish call to a “monster” crypto cycle.
According to the research, “we expect total crypto market cap to reach $7.5T by 2025 versus $2.6T today,” which implies that Robinhood’s cryptocurrency revenue should increase by a factor of nine. The business reported on Wednesday that the amount of cryptocurrency trades made on its platform increased by 10% in February compared to January.
The market capitalization of bitcoin (BTC) is expected to reach $3 trillion by 2025, that of ether (ETH) to reach $1.8 trillion, and that of other leading blockchain tokens to reach a total of $1.4 trillion. Analysts Gautam Chhugani and Mahika Sapra wrote, “We believe the crypto market is amidst unprecedented institutional adoption.” The broker also expects an ether ETF to become available within a year and sees Robinhood as a two-year cyclical trade, “riding the crypto-led earnings inflection over 2024-25.” Robinhood shares rose over 10% in after-hours trading.