Bernstein initiates SharpLink Gaming stock with Outperform rating

Investing.com - Bernstein analyst initiated coverage on SharpLink Gaming (NASDAQ:SBET) with an Outperform rating and a price target of $24.00 on Friday. Currently trading at $12.77, the stock has significant upside potential according to analysts, with targets ranging from $32 to $50 and a strong consensus buy recommendation, according to InvestingPro data.

The firm views SharpLink Gaming as a leading Ethereum treasury company that currently owns approximately 0.7% of the ETH supply.

Bernstein highlighted that Ethereum is the largest smart contract blockchain based on the value of financial assets secured, approximately $262 billion, while ETH has a market value of about $475 billion. SharpLink’s stock reflects this exposure with extreme volatility (Beta of 11.92) and impressive returns of 287% over the past six months.

The research firm expects SharpLink to develop into a compliant, institutional-focused investment vehicle for accessing ETH both as an investment and as a yield-generating asset.

Bernstein also noted that as interest rates decrease, SharpLink’s ability to deliver sustainable ETH yield above industry ETH staking yields should attract significant investor interest.

In other recent news, SharpLink Gaming, Inc. announced the deployment of $200 million in Ethereum on the Linea network to enhance yields through various staking and incentive strategies. The company has also increased its Ethereum holdings to 859,853 ETH after purchasing an additional 19,271 ETH, following a successful capital raise of $76.5 million. This capital raise was executed at a premium to net asset value. B.Riley initiated coverage on SharpLink with a Buy rating, setting a price target of $32.00. Similarly, Citizens initiated coverage with a Market Outperform rating and a price target of $50.00, indicating potential upside. SharpLink has also begun a share buyback program, repurchasing approximately 939,000 shares at an average price of $15.98. The company holds about $3.6 billion in Ether and has no outstanding debt. SharpLink’s management believes the company’s stock is significantly undervalued.

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