:max_bytes(150000):strip_icc()/GettyImages-2229933171-b771921835a6479fbb92f4c2eba7a187.jpg "Wall Street is Sizing Up Recent Crypto IPO Bullish. Some Analysts Are Lukewarm.")
:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-2229933171-b771921835a6479fbb92f4c2eba7a187.jpg)
Key Takeaways
- Analysts at Citi, Jefferies, and Oppenheimer this week started coverage of Bullish, the company that owns crypto news publication CoinDesk and operates a digital assets platform.
- Reports were generally positive, citing Bullish’s growth potential as a catalyst for growth, but a couple of firms said their neutral ratings on the stock were due to stretched valuations post-IPO.
- The stock has fallen since its trading debut, though still higher than its IPO price.
As more crypto firms hit the public markets, they are getting looked over by Wall Street’s analysts. One of the latest IPOs has some analysts feeling lukewarm—even though the shares have cooled off since trading started.
Analysts at Citi, Jefferies, and Oppenheimer on Monday all started coverage of crypto platform operator Bullish (BLSH), giving the company credit for its institutional focus, which differentiates them from rivals. However, its oversubscribed IPO and subsequent trading day pop prevented them from taking more positive stances, citing valuation.
And that’s even as shares of Bullish have fallen well off their $90 mid-August opening price—though they remain above their $37 IPO price. (The stock finished Monday down more than 4% to just over $50.)
Other crypto debuts are coming soon, with the Winklevoss twins’ Gemini Space Station expected to start trading on the Nasdaq exchange this Friday. European asset manager CoinShares, which has its own spot bitcoin ETF (BRRR), on Monday said it intends to go public via special purpose acquisition company Vine Hill Capital Investment (VCIC); the deal is set to close at the end of the fourth quarter.
As for Bullish, Jefferies initiated coverage with a “Hold” rating; Oppenheimer started at “Perform,” another neutral rating. Both firms observed the company’s “multiple” growth avenues, referring to both its digital asset platform and media operation CoinDesk.
Oppenheimer analyst Rayna Kumar wrote that while the businesses are distinct, they are also “complementary.” Jefferies’ Daniel Fannon said the company is “actively leveraging cross-sell opportunities,” with institutional trading customers offered premium data and analytics packages, while its Consensus conference attendees are “targeted” to use Bullish’s trading ecosystem.
“This cross pollination is expected to drive higher customer lifetime value, reduce churn, and foster higher growth,” he said. Jefferies has a $49 price target on the shares.
Citi’s Peter Christiansen, however, started coverage with a “buy” rating and a $66 price target. He called Bullish the “bullseye of the next crypto wave,” positioned to benefit from digital asset reform and more involvement in crypto from institutional investors and traditional financial firms. “We see Bullish at the epicenter of this movement,” Citi wrote.
