Analyst Kevin Dede of H.C. Wainwright reiterated a Buy rating on Fold Holdings (FLD – Research Report), retaining the price target of $7.00.
Don’t Miss TipRanks’ Half-Year Sale
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
- Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
Kevin Dede has given his Buy rating due to a combination of factors that highlight Fold Holdings’ potential for financial growth and resilience in the market. Despite recent selling pressure that saw the stock price drop significantly, Dede notes that there have been no changes to the company’s operating fundamentals. He anticipates that new products and services, such as Fold’s upcoming Visa-backed credit card offering bitcoin rewards, will enhance the company’s business proposition.
Furthermore, Dede points out that the current trading price of Fold Holdings is essentially equivalent to its bitcoin holdings alone, suggesting that investors are getting the company’s business fundamentals at no additional cost. He believes that the recent selling pressure was largely due to a liquidity-seeking rush by a few investors, and that this pressure has mostly subsided. With a conservative price target of $7 based on market cap-to-sales ratio, Dede sees the current valuation as an opportunity for investors to benefit from both the company’s improving fundamentals and the historical returns of bitcoin.