Needham raises Robinhood price target to $97 on strong May metrics
Needham raised its price target for Robinhood stock to $97, citing strong May metrics the company released on June 9 that showed significant acceleration in equities and event contracts trading. The new target is based on a 27x multiple on Needham's earnings projection and reflects the analyst firm's confidence in Robinhood's event-contracts business. Crypto volumes declined during the May period. Robinhood shares rose on Thursday following the upgrade. The event-contracts operation has emerged as a key valuation driver alongside traditional equities trading, with the company scaling its own Rothera clearing infrastructure even as it continues to route some volume through partner platforms.
The $97 target explicitly prices in Robinhood's event-contracts growth, giving management cover to shift more retail flow from Kalshi to its own Rothera exchange. Every basis point of margin captured on Rothera rather than shared with Kalshi flows straight to the multiple Needham just stamped.