Robinhood Markets' Expanded Offerings to Drive Long-Term Revenue Growth, Morgan Stanley Says

11:25 AM EDT, 09/01/2026 (MT Newswires) -- Robinhood Markets' (HOOD) expanded product offerings should help drive higher customer engagement, and in turn, long-term revenue growth at the retail trading platform, Morgan Stanley said in a note. Robinhood's broader product capabilities are improving customer economics, with assets per account growing 23% year-over-year to $12,900 in the second quarter. Total assets jumped 32% annually to $369 billion, driven by record net deposits and higher equity valuation, the company said late last month. "A broader wealth offering gives customers more reasons to consolidate assets on (Robinhood), while prediction markets and continued expansion of the active trader platform broaden customer engagement," Morgan Stanley said. The brokerage upgraded its rating on Robinhood's stock to overweight from equal-weight and raised the price target to $150 from $124. Morgan Stanley lifted its revenue estimates on Robinhood from 2026 to 2028, projecting a $7.97 billion tally in 2028 -- about 6% above Wall Street's consensus -- amid momentum from new growth engines. Robinhood continues to scale its new businesses across retirement, banking, credit card, advisory and prediction markets, according to the research note. The brokerage expects a 28% compound annual growth rate for earnings per share to $3.28 in 2028 from $1.99 in 2026. "While (Robinhood) trades at a premium to traditional brokerage peers, we see greater support for the valuation as the growth outlook strengthens and visibility into newer revenue opportunities improves," Morgan Stanley said. Robinhood shares were up 0.5% in Tuesday trade, but have fallen 6.9% this year. Late in July, Robinhood reported second-quarter results ahead of the Street's expectations as transaction-based revenue grew annually. Financial services provider Charles Schwab (SCHW) and trading platform Interactive Brokers (IBKR) also topped second-quarter analysts' estimates last month. Price: 106.08, Change: +1.27, Percent Change: +1.21