Gemini Rated Market Perform by KBW, Target Set at $27
KBW has initiated coverage of Gemini Space Station (GEMI) with a "market perform" rating and a $27 price target. The bank describes it as a comprehensive digital asset platform expected to grow long-term.
- Gemini is currently unprofitable, justifying its lower valuation compared to competitors like Coinbase due to execution and market risks.
- The platform's ecosystem includes trading, custody, credit cards, staking, stablecoins, and tokenized equities, offering cross-selling opportunities.
- Gemini's credit card business is seen as a significant growth driver, boasting over 100,000 users and strong exchange activity conversion through crypto rewards.
- Gemini went public last month at $28 per share, valuing the company at over $3 billion.
- The resolution of issues with Gemini’s Earn program is expected to enhance marketing and competitiveness.
- A new partnership with Nasdaq could generate $47.7 million in near-term revenue from custody and staking services, with potential additional benefits from tokenization trends.
- KBW highlights Gemini’s unified app and strong insider ownership by founders Cameron and Tyler Winklevoss as stability and growth advantages.
- KBW projects 53% annual revenue growth over three years and anticipates profitability by late 2027.
Current stock price rose 2% premarket to $25.80, still trading below its IPO price.