Prediction markets are fueling Robinhood’s progress, with sports activities betting already bringing in roughly $200 million to the buying and selling platform, based on Piper Sandler. The funding agency, which has an obese score on Robinhood, raised its worth goal on the alternate to $140 from $120, implying upside of 12%. “Prediction markets (aka occasion contracts) current important upside alternative for Robinhood,” analyst Patrick Moley stated within the observe to shoppers. Buying and selling platform Kalshi, which embeds a few of its occasion contracts into Robinhood, is on monitor to notch report month-to-month betting volumes in September, partially attributable to its rollout of NFL and NCAA-related markets — a boon for Robinhood and its shareholders, the analyst added. Kalshi and Robinhood have a 50-50 income share settlement that features a 2-cent payment per contract, based on Piper Sandler. HOOD YTD mountain HOOD YTD There may be some uncertainty over whether or not Kalshi can proceed providing athletics-related contracts in some U.S. markets, which might pose a menace to the alternate’s partnership with Robinhood. Over the previous a number of months, a couple of state regulators have ordered Kalshi to cease accepting wagers on sports activities occasions, alleging that the corporate’s actions don’t adjust to native gaming legal guidelines. Nonetheless, Kalshi has lawyered as much as problem the allegations that it should observe native laws. Piper Sandler’s stance on the inventory is in keeping with others overlaying Robinhood. Two-thirds of the 23 analysts who cowl the buying and selling platform price the inventory a purchase or sturdy purchase, LSEG knowledge reveals. Robinhood edged up 0.43% in premarket buying and selling Tuesday. The inventory has jumped greater than 200% 12 months thus far. ( Be taught one of the best 2026 methods from contained in the NYSE with Josh Brown and others at CNBC PRO Reside. Tickets and information right here . )