StoneX set a $42 price target for Bullish stock, which has lost about 50% of its value in six months, basing its outlook on the crypto exchange’s $4.2 billion deal for Equiniti.
According to The Block, StoneX initiated coverage of Bullish with a “buy” rating. Bullish shares were up 2.9% and trading above $22 on Monday morning. StoneX’s $42 price target implies an increase of about 90% from that level.
What could the Equiniti deal bring Bullish?
The $4.2 billion deal, which is awaiting regulatory approval, consists of $1.85 billion in debt Bullish will assume and approximately $2.35 billion in company shares. If completed, the deal will bring a share registry and transfer company serving approximately 3,000 issuers and 20 million shareholders under Bullish’s umbrella.
According to StoneX analyst Mark Palmer, Equiniti handles share registration and transfer services for about 30% of S&P 500 companies and half of FTSE 100 companies. Palmer believes this client network could give Bullish an important role in converting shares into tokens that can be traded on a blockchain.
What risks did StoneX highlight?
Bullish’s adjusted revenue in the second quarter rose 62% year over year to $92.6 million. Subscription, services, and other revenue reached a record $62.7 million. StoneX sees the existing business as a valuation anchor, while citing delays or failure to complete the Equiniti deal, slow demand for tokenized shares, and increasing competition as key risks.
Not investment advice.