H.C. Wainwright analyst Mike Colonnese reiterated a Buy rating on Bitcoin Depot today and set a price target of $3.50.
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Mike Colonnese has given his Buy rating due to a combination of factors that suggest long-term potential for Bitcoin Depot despite current challenges. The company reported strong third-quarter results, with a notable year-over-year increase in revenue and transaction size, which indicates a robust underlying business model.
Colonnese acknowledges the short-term revenue headwinds caused by new state regulations and seasonal volume declines, but he believes these are temporary. The strategic relocation of kiosks and continued fleet expansion, including international growth in Australia and Hong Kong, are expected to mitigate these challenges. Additionally, Bitcoin Depot’s recent acquisition of National Bitcoin ATM assets is seen as a positive step towards increasing market share. Overall, Colonnese anticipates that the company will overcome current obstacles and achieve long-term growth, justifying the Buy rating.