What to Know
- Clear Street has started coverage on Bakkt with a buy rating and a $14 target, indicating over 40% upside potential.
- The company is focusing on a blockchain-native payments platform with a strategy aimed at high-margin stablecoin transactions.
Clear Street initiated coverage of Bakkt (BKKT) with a buy rating and a price target of $14, suggesting a 44% increase following a significant decline this year. The shares have decreased over 60% in 2025, contrasted by an 11% gain in the S&P 500 index.
Currently, Bakkt trades at $9.83, reflecting a 0.7% rise in Wednesday’s early trading.
Bakkt has streamlined by shedding non-core units, aiming to become a leader in blockchain-native payment solutions, currently trading at 2.9 times the projected 2027 EV/EBITDA. Their operations focus on Crypto Services for institutions, alongside the Digital Transfer and Remittance (DTR) platform that aims to develop an infrastructure for stablecoin payments.
With a robust regulatory stance and lean costs, Bakkt is positioned to target the $190 trillion cross-border payments market. Analysts anticipate a 14% annual revenue growth until 2027, driven by the DTR platform, which is expected to generate substantial profits due to the higher margins of stablecoin transactions.
Furthermore, the DTR is planned for launch in 36 countries by late 2025, expanding to over 90 in 2026, with projections estimating transaction volumes reaching $2.6 billion by 2027.
Stablecoin transactions are nearly 100% more profitable than traditional crypto services, allowing for a forecast of 66% annual gross profit growth. Adjusted EBITDA is expected to become positive by early 2026, with estimated earnings of $49 million in 2027.
In summary, Clear Street views Bakkt as a strong investment due to favorable operating conditions, expected high-margin flows, and a potential re-evaluation relative to similar companies. Benchmark broker has also rated Bakkt as a buy with a price target of $13.
