StoneX initiates coverage on Robinhood with a "Buy" rating and a price target of $170.

BlockBeats News, September 9 - StoneX Financial (the brokerage and equity research arm of StoneX Group) has initiated coverage on Robinhood with a "Buy" rating and a price target of $170, approximately 45% above Robinhood's Tuesday closing price of $117.34. StoneX analyst Mark Palmer noted that nearly all of the company's operating metrics are accelerating. StoneX's equity research team currently covers over 350 companies.

StoneX believes that Robinhood Chain and the prediction markets business will serve as new growth drivers for the company. Among these, Robinhood Chain's daily fee revenue stood at approximately $4.59 million as of September 3, with StoneX projecting it could generate around $980 million in revenue by fiscal year 2029, at a profit margin of 85%. Additionally, Robinhood traded 13.6 billion event contracts in the prediction markets during the second quarter, generating related revenue of approximately $156 million, up 50% quarter-over-quarter.