Benchmark: Bakkt receives a "buy" rating with a target price of $13 as it restarts its business with a new strategy

PANews reported on September 8th, according to CoinDesk. Wall Street brokerage firm Benchmark, in a report released Monday initiating its rating on Bakkt's stock, stated that Bakkt Holdings (BKKT) is attempting to reboot its business after several turbulent years. Benchmark initiated coverage of the company with a "buy" rating and a price target of $13. The report noted that under the leadership of new CEO Akshay Naheta, the company has divested its custody business and is in the process of selling its legacy loyalty business, moves aimed at streamlining operations and rebuilding investor confidence.

The report states that the company's current strategy focuses on three major initiatives: first, launching a "one-stop brokerage" platform to connect banks and fintech companies to cryptocurrency services; second, launching a cross-border Bitcoin treasury program, which includes a planned investment in Japan's Marusho Hotta and expansion into India and South Korea; and third, collaborating with Distributed Technology Research to develop a stablecoin payment network called Bakkt Agent. Benchmark's valuation, based on an assessment of Bakkt's projected 2026 earnings, uses a 5x enterprise value to EBITDA multiple, ultimately arriving at a target share price of $13.