by In a recent development within the cryptocurrency landscape, Clear Street has initiated coverage of Bakkt (BKKT) with an optimistic buy rating and a price target set at $14. This target indicates a potential upside of 44% for investors, especially following a significant decline in the stock price over the year. This article delves into the factors driving this bullish outlook for Bakkt and explores its strategic positioning in the stablecoin market.
Bakkt: A Brief Overview
Bakkt, which has undergone substantial transformations to streamline its operations, is positioning itself as a leading blockchain-native payments platform. The company has divested from non-core units like Loyalty and Custody, allowing it to focus on its two main revenue streams: Crypto Services for institutional clients and its Digital Transfer and Remittance (DTR) platform.
Market Context: Bakkt’s Performance and Comparison
Despite the S&P 500 experiencing an 11% gain this year, Bakkt’s stock has faced challenges, plummeting over 60% in the same period. Early trading on Wednesday saw Bakkt’s shares rise by 0.7%, reaching approximately $9.83. Analysts from Clear Street point out that currently, Bakkt is trading at a mere 2.9 times its projected 2027 EV/EBITDA, suggesting that the stock is undervalued compared to its growth potential.
Stablecoin Growth: The Driving Force
One of the key factors behind Clear Street’s positive outlook for Bakkt is its focus on stablecoin growth. Stablecoins present an opportunity for higher margins, and transactions in this market offer nearly double the profit margin compared to traditional crypto services. In fact, analysts project that Bakkt will experience a remarkable 66% annual growth in gross profit, largely driven by the DTR platform’s expansion into stablecoin payment infrastructure.
Revenue Projections and Profitability
Clear Street anticipates that Bakkt will achieve a robust 14% annual revenue growth through 2027. The DTR platform is expected to play a crucial role in driving both scale and profitability. By early 2026, adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) is projected to turn positive, reaching $49 million by 2027, bolstered by an anticipated $60 million cost reset.
Global Expansion Plans
Bakkt’s DTR platform is set to launch in 36 countries by late 2025, with ambitions to expand to over 90 countries in 2026. This strategic rollout is projected to generate a transaction volume of approximately $2.6 billion by 2027. Such growth positions Bakkt favorably in the $190 trillion cross-border payments market, allowing it to capture significant market share.
Institutional Focus: A Unique Business Model
What sets Bakkt apart from its competitors is its institutional-first model, which minimizes dependency on retail crypto adoption. The company is strategically targeting regulated partners such as remittance firms and neobanks. This focus, combined with its robust compliance framework, which includes a BitLicense and over 50 state money transmitter licenses, provides Bakkt with a solid foundation for rapid scaling within a highly regulated environment.
Competitive Landscape and Future Outlook
With an increasing number of players entering the cryptocurrency space, Bakkt’s emphasis on high-margin stablecoin flows and operational leverage positions it as an undervalued asset in the market. Analysts from both Clear Street and rival broker Benchmark have initiated coverage with buy ratings, further validating Bakkt’s growth potential. Benchmark has set a slightly lower price target of $13, reinforcing the notion that Bakkt is a worthy investment consideration.
Conclusion: Bakkt’s Promising Future
As Bakkt continues to refine its business model and expand its global footprint, the company’s strategic focus on stablecoin infrastructure and institutional partnerships may unlock considerable value for investors. With a favorable market environment and a strong regulatory framework, Bakkt is well-positioned to capitalize on the emerging opportunities within the cryptocurrency sector.
For those interested in exploring more about cryptocurrencies and investment strategies, resources such as How to Buy Bitcoin, What is XRP, and How to Buy Cryptocurrency can provide valuable insights.
Meta Description: Explore Clear Street’s bullish rating on Bakkt (BKKT) with a 44% upside driven by stablecoin growth. Discover Bakkt’s strategic focus, revenue projections, and institutional partnerships in the evolving cryptocurrency landscape.
