Bakkt Holdings, Inc. Class A (BKKT) has received a new Buy rating, initiated by Benchmark Co. analyst, Mark Palmer.
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Mark Palmer has given his Buy rating due to a combination of factors that highlight Bakkt Holdings, Inc.’s strategic repositioning and growth potential. The company has undergone significant restructuring, shedding non-core operations to focus on three main initiatives: a revamped brokerage-in-a-box solution, a multinational bitcoin treasury strategy, and a stablecoin payments initiative. This refocusing is expected to enhance profitability and investor confidence.
Additionally, Bakkt’s comprehensive regulatory framework, including a New York State BitLicense and money transmitter licenses across all U.S. states, positions it as a valuable partner for fintech companies and larger institutions seeking compliant crypto services. These licenses create high barriers to entry, providing Bakkt with a competitive advantage. Furthermore, the company’s strategic partnerships and expansion plans, such as the acquisition of shares in MarushoHotta in Japan and efforts in India and South Korea, underpin its growth strategy. The valuation of Bakkt, with a price target of $13, is supported by a projected EBITDA growth, reflecting the company’s potential for scalable growth through its innovative initiatives.
According to TipRanks, Palmer is a 4-star analyst with an average return of 9.4% and a 46.97% success rate. Palmer covers the Financial sector, focusing on stocks such as Coinbase Global, Hut 8, and Galaxy Digital.