According to CoinMeta, Morgan Stanley has upgraded its rating of Robinhood from “balanced allocation” to “overweight,” and raised its target price from $124 to $150, representing a potential upside of about 43% from Monday’s closing price. Morgan Stanley believes that the market has underestimated the monetization potential of Robinhood for its existing user base of around 28 million users. The continued expansion of products such as prediction markets and derivatives is expected to increase user asset size, trading activity, and per-user revenue. The firm notes that less than 2 million users of prediction markets are expected to generate approximately $156 million in revenue in the second quarter and will further utilize other products on the platform. Additionally, Robinhood’s derivative exchange and clearing platform, Rothera, is expected to extend its distribution advantages to the trading infrastructure, thereby bringing in additional order flow for the platform as well as potential third-party revenue.