Analysts at Bernstein have increased their price target for Robinhood (NASDAQ: HOOD) from $130 to $160.

The firm suggests that investors are overlooking a significant industry transformation that could propel the trading platform beyond its traditional stock and cryptocurrency operations into a new business phase.

Analyst Gautam Chhugani noted in the report that while a minor market pullback following the World Cup might be expected, capital markets are largely missing the generational platform shift occurring within the trading sector.

Chhugani forecasts that over the next two years, brokerage firms like Robinhood, national exchanges such as Intercontinental Exchange Inc (NYSE: ICE) and CME Group Inc (NASDASQ: CME), prediction markets like Kalshi and Polymarket, and native crypto exchanges including Hyperliquid, Binance, and Coinbase Global Inc (NASDASQ: COIN) will compete in high-growth areas like prediction markets, tokenized stocks, and perpetual contracts, vying for a total fee market estimated to exceed $70 billion.

Data from the report indicates that Robinhood's prediction market revenue, powered by its proprietary Rothera exchange, is poised for rapid growth, projected to reach $1.7 billion by 2028.

Although Robinhood currently still offers event contracts from Kalshi to its clients, the platform is actively steering users towards its own ecosystem. Robinhood continues to distribute Kalshi's contracts while simultaneously launching similar event contracts issued on its own Rothera exchange. Concurrently, Kalshi is expanding beyond the prediction market arena into other financial markets.

Chhugani observes that Robinhood and Kalshi are gradually developing a complex, competitive-yet-cooperative relationship.