In a report released today, Michael Cyprys from Morgan Stanley maintained a Hold rating on Gemini Space Station, Inc. Class A, with a price target of $29.00.
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Michael Cyprys has given his Hold rating due to a combination of factors that present both opportunities and challenges for Gemini Space Station, Inc. The company has shown promising growth in its credit card accounts, significantly surpassing expectations, which suggests potential for long-term expansion. However, this optimism is tempered by concerns over increased expenses and a less favorable outlook for profitability, especially in light of recent volatility in the cryptocurrency market.
While Gemini’s revenue exceeded expectations, driven by credit card and advisory fees, the sustainability of these revenue streams is uncertain. The transactional revenue fell short due to lower retail trading volumes compared to competitors, and the advisory fees may not be a recurring source of income. Additionally, the company’s ambitious plans for a “super app” and geographic expansion are promising, but the path to achieving these goals and ensuring consistent profitability remains unclear. As such, Cyprys takes a cautious stance, opting for a Hold rating while awaiting more evidence of durable growth and a clearer path to profitability.
In another report released yesterday, TR | OpenAI – 4o also initiated coverage with a Hold rating on the stock with a $15.50 price target.