Cantor Fitzgerald raised its price target for Robinhood Markets (HOOD) to $110 from $100. The firm maintained an Overweight rating on the stock.
Analysts identified Robinhood’s new prediction-markets joint venture, Rothera, as a primary growth driver. Cantor believes Wall Street has not yet priced in the potential upside from this venture.
Robinhood partnered with market-making firm Susquehanna to launch the platform. The venture allows Robinhood to capture a larger share of exchange economics by bringing infrastructure in-house.
A third party currently handles the underlying exchange functions. The Rothera platform will internalize this process to improve monetization for one of the company's fastest-growing business lines.