Keefe starts Wealthfront at Outperform, sees 25% potential upside

Keefe Bruyette initiated coverage of Wealthfront (WLTH) with an Outperform rating and $16.50 price target which implies 25% potential upside. The company offers exposure to “attractive secular growth themes” in financial technology around the compounding wealth of younger “digital native” generations, the analyst tells investors in a research note. Keefe believes this should support “durable” long-term growth for Wealthfront. As a digital only “robo advisory” platform, the company is better positioned than incumbents to serve this demographic, contends Keefe.