Bakkt Share Price Spikes 17% After Analyst Triples Price Target to $40

Bakkt Holdings stock rose 17% on Tuesday, adding to the recent rally, adding to the benchmark company, which has more than tripled its one-year price target of $40 for digital asset services providers.

Investment banks have bounced the growth potential of BAKKT’s three major businesses, crypto infrastructure, stubcoin payments, crypto infrastructure, and its Bitcoin Treasury, bounced the price for the two weeks earlier this month to a 170% price.

“BKKT remains an attractive purchase even after its rapid screening, as it is cheaper than both its growth potential and its peers of its fintech/digital asset ecosystem,” wrote benchmark analyst Mark Palmer. “The stock surge reflects new attention to the company, but I don’t think it’s approaching a full reflection of the range of options across three high-growth themes.”

According to Yahoo Finance data, Bakkt has recently surpassed that threshold by over $30, exceeding that threshold, but has fallen 97% since it reached its all-time high in 2021. I struggle to fall below $10 for most of the year. That performance has led the company to relocate itself.

In his memo, Palmer called BKKT’s rating “low-down” compared to those of other prominent publicly traded crypto companies, including Coinbase, Circle and Robinhood. Palmer praised veteran crypto industry investor Mike Alfred for the addition of the Bakkt board.

“Alfred’s current role is running the Private Investment Partnership Alpine Fox LP. [Bitcoin miner] Aylen means bringing capital allocation and experience of scaling companies that should add rigor to BKKT’s decision-making process,” Palmer writes.

Bakkt’s stock jumped beyond analysts’ one-year consensus targets after announcing Alfred’s appointment. Other initiatives also appeared to be giving Bakkt Tailwinds.

In July, Bakkt announced it had sold its loyalty rewards business for $11 million as it seeks to focus more on digital asset infrastructure.

The sale is intended to streamline operations and allow the company to concentrate on core crypto services, including custody. Stablecoin Payments and tokenized assets. In the second quarter, the Crypto business generated more than $568 million in revenue, while the loyalty unit generated approximately $10 million.

In June, Bakkt informed the US SEC of its plans to sell up to $1 billion in securities to provide fresh capital for the expansion of the Corporate Treasury Department, including Bitcoin. It was less than three weeks after the company updated its investment policy and was able to include Bitcoin and other digital assets as part of its broader financial strategy.

Palmer began compensation just eight days ago with a price target of $13, and said the company is “a fresh start.”