Rosenblatt initiates Bullish stock with Buy rating on crypto growth potential

Investing.com - Rosenblatt Securities initiated coverage on cryptocurrency exchange Bullish (NYSE:BLSH) with a Buy rating and a $60 price target on Monday. The stock, currently trading at $52.35 with a market capitalization of $7.65 billion, has experienced significant volatility, dropping over 11% in the past week.

The research firm cited the improved U.S. political environment as a significant tailwind for the cryptocurrency sector, which is driving increased institutional adoption. According to InvestingPro data, while Bullish maintains strong liquidity with a current ratio of 15.98, the company faces profitability challenges with razor-thin gross margins of 0.07%.

Rosenblatt highlighted that Bullish has already achieved over $0.5 trillion in annual trading volume without access to U.S. clients, positioning the company to benefit substantially from its upcoming U.S. launch.

The firm also noted Bullish is uniquely positioned to capitalize on stablecoin opportunities following the GENIUS Act, which could add recurring revenue streams outside its volatile trading business.

Rosenblatt’s $60 price target is based on 31 times its 2027 Adjusted EBITDA estimate, with the firm expecting material upside to consensus estimates due to Bullish’s media assets that both diversify and complement its core business.

In other recent news, Bullish has been in the spotlight with several analyst firms initiating coverage on the company. Jefferies started with a Hold rating and a $49 price target, describing Bullish as an attractive growth story in the crypto market. JPMorgan also initiated coverage with a Neutral rating and a $50 price target, expressing confidence in the company’s management team. Bernstein gave Bullish a Market Perform rating with a $60 target, anticipating it could become the second-largest institutional exchange after Coinbase by 2026. Additionally, Compass Point rated the stock as Neutral with a $45 price target, noting its potential to gain market share in the U.S. market.

In regulatory developments, Bullish has obtained a MiCAR license from Germany’s BaFin, allowing it to provide digital asset trading and custody services across the European Union. This marks a significant step for Bullish, which was previously operating under grandfathered crypto brokerage and custody licenses from BaFin. These recent developments highlight Bullish’s strategic positioning and potential growth in both the European and U.S. markets.

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