Deutsche Bank is adopting a more optimistic stance on Bullish moving forward. The bank upgraded shares of the cryptocurrency exchange to buy from hold. However, it slightly lowered its target price to $51 from $52. Shares of Bullish are down slightly from their IPO price of $37 per share. The stock opened at $90 on the New York Stock Exchange in August. Bedell’s updated forecast implies an upside of 40%. Shares have since tumbled 51% from their highs of the year, opening up an attractive entry point, said analyst Brian Bedell. “We see the stock now offering a more compelling risk/return profile, trading at 31x our 2027 EPS estimate, after contracting over 50% from its peak in mid-August and with the shares now 5% below the August 12 IPO price,” he wrote. “While part of the decline is due to the recent weakness in crypto prices (BTC down to a level near $89,000 vs. a peak of $125,000 in early October), we see the company remaining on its planned growth trajectory consistent with its communication post the IPO process.” BLSH 3M mountain BLSH 3M chart Bedell upgraded Bullish after its third-quarter earnings release on Wednesday. Revenue topped expectations, but adjusted net income missed estimates. The results sent Bullish stock down 3.6% in the previous session. Still, Bedell said these results were “good overall,” and that he viewed the fourth-quarter guidance as positive. He pointed to the company’s U.S. expansion and its role in providing infrastructure for traditional financial firms trying to expand into crypto. This will become increasingly acknowledged by investors, he wrote, boosting the stock higher at least over the next few quarters. “We see quite encouraging business momentum across both trading and fee-based (SS & O) revenue streams, amid Bullish’s U.S. expansion and strong position in helping traditional finance firms integrate crypto into their platforms, as well as leading destination for low-cost and liquid trading,” he added. “This is coupled with good cost control and high incremental margins from new revenue.”
