Cantor Raises Robinhood Target On Prediction-Markets Venture It Says Wall Street Hasn't Priced In

• Cantor Fitzgerald raised its Robinhood price target to $110 from $100 and kept an Overweight rating, citing upside it says Wall Street has not yet priced in.
• With Robinhood trading near $85.66, the new target implies about 28% upside.
• The call rests on Robinhood's Rothera prediction-markets venture with Susquehanna, which Cantor expects to recapture most of the exchange economics a third party now collects.

Cantor Fitzgerald raised its Robinhood Markets, Inc. (HOOD) price target to $110 from $100 on Tuesday, citing a prediction-markets venture that the firm says Wall Street has not yet priced in.

According to TheFly, the firm lifted its target by 10% and kept an 'Overweight' rating, pointing to Robinhood's Rothera prediction-markets joint venture with Susquehanna, which Cantor said represents upside not yet reflected in Wall Street estimates.

As of writing, HOOD was trading at $85.66, making Cantor Fitzgerald's price target an implied upside of about 28%. HOOD’s stock was up over 2% during early morning trade. On Stocktwits, the retail sentiment around HOOD moved to the ‘neutral’ from ‘bullish’ zone, while chatter around it stayed in the ‘high’ levels over the past day. 

On Rothera Venture

In its note, Cantor said Robinhood currently earns retail brokerage economics on its prediction-market volumes while a third-party provider captures the underlying exchange economics, and that the Rothera venture should recapture a large majority of those exchange economics over time. 

Cantor said its new target is based on 27 times its 2027 adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) estimate of $3.42 billion, combined with a discounted cash flow analysis.

Robinhood's prediction-markets business has been one of its fastest-growing lines. On the company's first-quarter earnings call, Chief Executive Vlad Tenev called it the fastest-growing business in Robinhood's history and described a prediction market supercycle that he said could eventually drive trillions of contracts a year.

A 'Super App' With One Soft Spot

Robinhood's run-up has also drawn retail commentators who argue its crypto weakness is masking strength elsewhere. CK Capital, an investor posting on X, said buyers are getting "the whole platform at a discount because one segment is temporarily soft."

Another analyst named Luc on X flagged a cluster of near-term catalysts. The Pattern Day Trader rule, which required a $25,000 balance to actively day trade, ended on June 4, broadening access for smaller accounts. 

Robinhood also launched prediction-market trading for the 2026 FIFA World Cup, and the company has said it is the sole broker and trustee for Trump Accounts, the federal children's savings program, with more than 5.5 million minors enrolled.

Read also: Arthur Hayes Bets The AI Bubble Will Pop And Drag Bitcoin Down — Here's Why He Dumped HYPE, NEAR, ZEC And WLD

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