Mark Palmer, an analyst from Benchmark Co., reiterated the Buy rating on Bakkt Holdings, Inc. Class A. The associated price target was raised to $40.00.
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Mark Palmer has given his Buy rating due to a combination of factors that highlight Bakkt Holdings, Inc.’s potential for growth and value. Despite a significant recent rally, the stock is still considered undervalued compared to its peers in the digital asset sector, with a promising outlook based on its involvement in crypto infrastructure, bitcoin treasury, and stablecoin payments. The company’s valuation remains attractive, trading at a lower EV/EBITDA multiple than other major digital asset firms, suggesting further upside potential.
Under the leadership of CEO Akshay Naheta, Bakkt has strategically exited non-core operations, improving its profitability prospects. The focus has shifted to innovative solutions like the ‘brokerage-in-a-box,’ a bitcoin treasury strategy, and a stablecoin payments initiative, which are expected to drive future growth. Additionally, the appointment of Mike Alfred to the board, with his extensive experience in Fintech and digital assets, is seen as a positive step towards enhancing the company’s strategic decision-making. Consequently, the price target has been raised to $40, reflecting confidence in Bakkt’s ability to capitalize on its growth opportunities.
Palmer covers the Financial sector, focusing on stocks such as Hut 8, Galaxy Digital, and Coinbase Global. According to TipRanks, Palmer has an average return of 13.0% and a 50.10% success rate on recommended stocks.