Deutsche Bank advised to buy shares of crypto exchange Bullish. They fell below the IPO price
Deutsche Bank improved its recommendation on shares of cryptocurrency exchange Bullish - from a neutral rating to a recommendation to buy these securities, reports CNBC. Analyst Brian Bedell lowered their target price from $52 to $51, while the new target is 40% higher than the current quotes. The bank revised its position after Bullish shares fell so low that they traded below the price of the IPO, which took place in August.
The company placed its securities on the exchange at $37, on the first day of trading they soared to $90. On November 19, the cryptocurrency exchange's shares closed the session at $36.4, and on November 20, they rose by about 0.2%, even despite the general stock market collapse.
"The [Bullish] paper now offers a more interesting risk/return ratio: it trades at a 31x multiple to our 2027 earnings per share estimate - after falling more than 50% from its mid-August peak," Bedell wrote in a note cited by CNBC.
The analyst explains that the decline in Bullish's value is also due to weakness in the cryptocurrency market, which has lost more than $1 trillion in recent weeks. However, Deutsche Bank believes that the company is maintaining its intended growth trajectory, which it announced after going public, Bedell emphasized.
What the quarterly report showed
The fall in shares in trading on Wednesday, which pushed the quotations below the Bullish offering price, occurred after the publication of the company's quarterly report. Its revenue exceeded expectations, but adjusted net income was below consensus.
Bedell assessed the crypto exchange's results as "generally good" and noted that its outlook for the fourth quarter looks positive. "We see very encouraging business momentum in both transaction fee revenue and subscription services due to Bullish's expansion in the US. It is also in a strong position to integrate traditional fintech companies into the cryptosphere. Bullish retains its status as one of the key platforms for cheap and highly liquid trading," the analyst said. - This is complemented by good cost control performance and high margin growth from new revenue".
What others are saying
Analysts' opinions on Bullish shares are divided: according to MarketWatch, half of the 12 Wall Street analysts tracking the crypto exchange's stock recommend buying it, while the rest advise holding it in a portfolio. The consensus price target is $58.7, up 61.4% from the close of trading on Nov. 19.
This article was AI-translated and verified by a human editor
