Bakkt Receives Buy Rating with $14 Price Target from Clear Street
Clear Street has started coverage of Bakkt (BKKT) with a buy rating and a $14 price target, indicating a potential 44% upside after a significant decline this year.
- Shares have decreased over 60% in 2023, while the S&P 500 gained 11%.
- Current trading price is approximately $9.83.
- Bakkt has divested non-core units to focus on a blockchain-native payments platform.
- Valuation stands at 2.9x projected 2027 EV/EBITDA.
- Business model includes Crypto Services for institutions and a Digital Transfer and Remittance (DTR) platform for stablecoin payments.
- Projected annual revenue growth of 14% through 2027, driven by DTR.
- Stablecoin transactions expected to nearly double margins compared to crypto services, leading to 66% annual gross profit growth.
- Adjusted EBITDA anticipated to become positive by early 2026, reaching $49 million in 2027.
- DTR aims for launch in 36 countries by late 2025, expanding to over 90 in 2026 with transaction volume predicted at $2.6 billion by 2027.
- Bakkt's institutional-first model targets regulated partners, supported by strong compliance frameworks including BitLicense and multiple state money transmitter licenses.
Benchmark also initiated coverage of Bakkt with a buy rating and a $13 target.