BLSH Stock Climbs Back Above IPO Price After Deutsche Bank Upgrade

• Bullish shares rose as much as 8% on Thursday morning, trading above IPO price of $37.
• As cited by CNBC, Deutsche Bank upgraded the stock to ‘Buy’ from ‘Hold’ while lowering the price target slightly to $51 from $52.
• Analyst cited strong U.S. expansion and support for traditional finance firms entering crypto.

Shares of crypto exchange Bullish (BLSH) climbed as much as 8% in Thursday morning trade, rising back above their IPO price of $37 after Deutsche Bank reportedly upgraded the stock.

BLSH’s stock was trading at around $38 after hitting an intra-day high of $39.58. On Stocktwits, retail sentiment around the Peter Thiel-backed enterprise trended in ‘extremely bullish’ territory over the past day with chatter at ‘extremely high’ volumes. 

The uptick follows a strong Q3 earnings report in which Bullish posted revenue of $77 million, exceeding analyst expectations of $71 million, according to Koyfin data. However, adjusted earnings per share (EPS) came in at $0.10, below the $0.59 estimate. The stock set an intraday low of $34.24 in the previous session.

Deutsche Bank Sees ‘Compelling’ Risk-Reward

Deutsche Bank’s report, as cited by CNBC, upgraded Bullish to ‘Buy’ from ‘Hold’ while slightly lowering its target price to $51 from $52. Analyst Brian Bedell pointed to the stock’s attractive risk-reward profile, trading at 31 times projected 2027 EPS after falling more than 50% from its mid-August peak.

“Part of the decline is due to the recent weakness in crypto prices—Bitcoin down near $89,000 from a peak of $125,000 in early October—but we see Bullish maintaining its growth trajectory post-IPO,” Bedell wrote. He described Q3 results as “good overall” and noted that fourth-quarter (Q4) guidance remains positive.

Drivers Of Growth

Bedell stated that Bullish’s U.S. expansion and its role in helping traditional financial firms integrate crypto infrastructure will boost BLSH stock higher over the next few quarters. 

“We see quite encouraging business momentum across both trading and fee-based (SS&O) revenue streams, amid Bullish’s U.S. expansion and strong position in helping traditional finance firms integrate crypto into their platforms, as well as leading destination for low-cost and liquid trading,” he wrote. “This is coupled with good cost control and high incremental margins from new revenue.”

According to Koyfin data, Wall Street has an average price target of $59 for BLSH stock, representing a potential upside of 55% from the current level. 

Read also: BTC Price Rebounds After ETF Flows Turn Positive – Solana Outperforms While Binance Coin, Ethereum Slide

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