"A bridge to the future": Evercore advised to buy Gemini shares and expects them to rise by 20%

Analyst Evercore began coverage of cryptocurrency platform Gemini Space Station's stock with a "buy" recommendation, expecting it to rise another nearly 20%. He said the company, founded by billionaire Winklevoss, is "building a bridge to the future of the financial world" and is well positioned to be a beneficiary of a new growth cycle in the early-stage digital asset market. Shares of the company, which went public last month, were up 1.5 percent in extended trading on Oct. 7.

Evercore analyst Adam Frisch initiated coverage of Gemini Space shares with an Outperform rating ("above market") and a $30 target price - it's 19% above its Oct. 6 closing level, CNBC reports. Frisch believes the company is "building a bridge to the future of the financial world," laying the groundwork for long-term growth in cryptocurrencies and digital payments. According to him, Gemini Space Station offers investors a lucrative opportunity to participate in the new phase of growth of digital assets. The analyst emphasized that the fundamental backdrop remains positive and the company's small size gives it an advantage in flexibility and speed of development compared to larger players.

"While the company's scale is well behind peers, Gemini is well positioned to capitalize on the long-term growth of digital assets and regain market share by focusing on user engagement," Evercore said in a note cited by CNBC. The investment bank acted as one of the underwriters for Gemini's IPO last month.

Frisch cited the high reputation of the platform's founders - billionaires and early bitcoin investors the Winklevoss twins - as an additional factor in Gemini's credibility. "Admittedly, Gemini's growth story is still early stage and not suitable for all investors. However, the combination of the fact that the company has a unique potential to outperform relative to its peers and the Winklevoss brothers' successful track record of innovation and strategy execution against the backdrop of strong structural drivers in the industry leads us to believe that the risk/return ratio looks attractive at current levels," the analyst said.

Gemini Space shares rose 1.6% to $25.7 in extended trading on October 7. Since the IPO last month, the company's securities have fallen in price by almost 10%. The initial public offering was priced at $28 per share, and at the close of trading on Monday the securities were worth $25.29.

In addition to Evercore, a number of other investment banks began coverage on Gemini Space shares on Tuesday. For example, Mizuho also gave them an Outperform rating and $30 target price. The investment bank said Gemini is a next-generation digital asset platform combining trading, credit cards, staking and custodial services with a focus on regulatory transparency. The bank expects Gemini's revenue to grow at a compound annual growth rate of 46% in exchange transactions and over 110% in the credit card segment through 2027, supported by marketing activity and sustained growth in the crypto market.

Rosenblatt also started tracking the cryptocurrency exchange's stock with a Buy rating and a $30 target price, noting regulatory improvements in the U.S. cryptocurrency industry. Morgan Stanley, on the other hand, is not as optimistic: it assigned a Neutral rating - Equalweight - and a target price of $29. Goldman's rating is similar, and the target is even lower - $25 per share, which corresponds to the last closing price.

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