Clear Street started the scope of BAKKT (Bkkt) With a purchase rating and a target price of $ 14, indicating 44% upside down after a steep year-to-date decline, the broker said in a research report on Tuesday.
Shares have dropped more than 60% this year compared to a 11% gain for the S&P 500 stock index. The stock was 0.7% higher, around $ 9.83, in early trading Wednesday.
Bakkt poured units that are not like Honesty and caution to streamline a blockchain-native payment platform, which traded at 2.9X expected 2027 EV/EBITDA, the report mentioned.
Its business now depends on two columns: crypto services for institutions and its digital transfer and remittance (DTR) Platform, which builds the stablecoin payment infrastructure. Through strong foot regulation, a lean cost cost structure, and higher margin stablecoin metals, the BAKKT is positioned to obtain part in the $ 190 trillion cross-border payment market, the analysts led by Brian Dobson wrote.
Clear Street projects 14% annual income growth by 2027, with DTR driving the same size and profitability.
The broker noted that Stablecoin transactions have offered almost double the margin of crypto services, which drives gross profit growth to 66% year -old. The adjusted EBITDA is expected to be positive by early 2026 and hit $ 49 million in 2027, supported by a $ 60 million cost reset.
The DTR is set to launch in 36 countries in late 2025 and expands to 90-plus in 2026, with a transaction volume forecast to reach $ 2.6 billion by 2027, the analysts wrote.
The BAKKT’s institutional-first model avoids hoping for the retail crypto adoption, targeting regulated partners such as remittance firms and neobanks, the broker said, and its bitlicenses and 50-plus state transmitter licenses provide one of the loudest compliance with frameworks in US, which is fast-paced with US FAMEWORKS in US, scaling.
With high-margin stablecoin flow, operating leverage, and a re-rating on multiple peer, Clear Street sees BAKKT as an unimaginable stablecoin infrastructure playing with the material reversed.
The rival broker benchmark began the BAKKT scope with a purchase rating and a $ 13 target on Monday.
Read more: Bakkt reboot with fresh approach; Start to Buy with $ 13 Target Price: Benchmark
