Northland raises Bitcoin Depot stock target to $5 from $3.25

Published 16/05/2025, 12:46
Northland raises Bitcoin Depot stock target to $5 from $3.25

On Friday, Northland analysts upgraded Bitcoin Depot stock (NASDAQ:BTM) from Outperform to Outperform, setting a new price target of $5.00, up from the previous $3.25. The upgrade follows Bitcoin Depot’s first quarter 2025 earnings report, which revealed revenues and adjusted EBITDA that exceeded both the company’s guidance and Northland’s estimates. According to InvestingPro data, BTM has shown remarkable momentum with a 24% return in the past week alone, though the RSI suggests the stock is currently in overbought territory.

Bitcoin Depot announced a 19% year-over-year increase in revenue to $164.2 million, surpassing Northland’s projection of $152.5 million. Adjusted EBITDA saw a significant jump of 315% year-over-year to $20.3 million, which also outperformed Northland’s expectation of $12.7 million. The company’s guidance for the first quarter had been set at $151 million to $154 million in revenue and $12 million to $14 million in adjusted EBITDA. The company maintains a healthy financial position with a current ratio of 1.09 and operates with a moderate debt level. InvestingPro analysis reveals 8 additional key insights about BTM’s financial health and growth prospects.

The earnings beat was attributed to a 7% quarter-over-quarter rise in the median transaction size, which reached $300. The performance reflects the success of Bitcoin Depot’s kiosk strategy. The company currently has 3,200 kiosks, representing 40% of its active fleet of approximately 8,400, that are still in the ramping-up phase, having been placed less than a year ago. Additionally, Bitcoin Depot has 2,000 kiosks in inventory, poised to support future growth.

Looking ahead, Bitcoin Depot has provided guidance for low single-digit to mid-single-digit year-over-year revenue growth in the second quarter of 2025. This forecast is considered conservative by Northland, given the seasonality and strong year-over-year comparisons. InvestingPro’s comprehensive analysis indicates the company’s overall financial health score is GOOD, with analysts expecting profitability this year. Get the full picture with InvestingPro’s detailed research report, available along with in-depth analysis of 1,400+ US stocks.

The new price target of $5.00 is based on a modest 5.5 times projected 2025 adjusted EBITDA. The analysts noted that the shares are currently trading at just over 2.5 times adjusted EBITDA, indicating room for growth.

In other recent news, Bitcoin Depot reported strong financial results for the first quarter of 2025, with a 19% increase in revenue year-over-year, reaching $164.2 million. The company also achieved a net income of $12.2 million, marking a significant turnaround from a $4.2 million loss in the previous year. This performance underscores Bitcoin Depot’s effective strategic initiatives and expansion efforts, including the deployment of over 100 new kiosks in Australia. The company anticipates low to mid-single-digit revenue growth for the second quarter of 2025. Additionally, Bitcoin Depot’s adjusted EBITDA increased by 315% year-over-year to $20.3 million. The company’s recent expansion efforts, including its plans to enter additional international markets, reflect its ongoing growth strategy. Bitcoin Depot’s focus remains on operational enhancements and international expansion, with no significant capital expenditures planned for 2025.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.