Robinhood stock gains momentum as Deutsche Bank upgrades price targets following an explosive surge in daily fee revenue from the company's new blockchain platform.
Deutsche Bank raised HOOD's price target and earnings estimates citing explosive fee revenue growth from its new Robinhood Chain, though sustainability remains uncertain.
Deutsche Bank lifted its price target for Robinhood Markets (HOOD) from $115 to $136, citing a rapid surge in fee revenue from the newly launched Robinhood Chain. Daily network revenue climbed from under $200,000 in mid-August to over $4 million by early September, prompting higher earnings estimates. Analysts remain cautious regarding the long-term sustainability of this momentum.
The bank cited explosive growth in fee revenue generated by the Robinhood Chain, which significantly outperformed previous quarterly forecasts.
While early activity is strong, analysts note that the platform has a short operating history and visibility into the long-term durability of this momentum remains limited.