Compass Point Initiates Coverage of Bullish with $45 Price Target
Compass Point has started coverage of crypto platform Bullish (BLSH) with a neutral rating and a $45 price target. Key points include:
- Analyst Ed Engel notes Bullish's lower fee structure could impact Coinbase's market share.
- Concerns arise regarding market entry timing pending the CLARITY Act, which may not pass until 2026.
- New York's BitLicense regulations present additional hurdles for Bullish's model as a self-market maker.
- Engel suggests a better buying opportunity could emerge in 1-2 quarters due to current stock valuation at a 110x multiple on projected EBITDA.
- Bullish's $2.7 billion crypto treasury, primarily in bitcoin, ties its stock performance to BTC price fluctuations.
- The $45 target assumes bitcoin reaches $160,000, with a 50% chance of U.S. market entry adding approximately $12 per share.
- Bullish debuted at $37 per share in August, peaking at $68 before closing down 4.6% at $59.20.