Stock Falls 10%, Analyst Raises Price Target: What Changed at the Tokenization Company?

StoneX raised its price target from $12 to $18, citing the revenue potential of Securitize’s new stock-token platform, as the company’s shares fell 10% Monday morning.

According to The Block, StoneX analyst Mark Palmer maintained his “Buy” rating on Securitize. The new target implies approximately 45% upside from the price Monday morning cited in the report.

At the center of Palmer’s optimism is Securitize Stocks, which launched last Thursday. The analyst argues that the company should now be viewed not only as a service provider that brings assets onto the blockchain, but also as an operator of the market where those assets are traded.

Why did $5.3 billion in volume generate so little revenue?

According to StoneX, Securitize management said during its second-quarter results call in August that most of its tokenization revenue came from integration fees. As a result, only a very small portion of the $5.3 billion in trading volume during the quarter generated revenue for the company.

The new platform is expected to change that picture. Securitize will now be able to generate revenue from trading and service fees; services related to collateral could also generate additional revenue in the future.

Apple, Nvidia, and Tesla shares on Solana

Securitize Stocks offers tokenized shares of companies including Apple, Nvidia, and Tesla on Solana. Trades are settled in USDC. These products are fully backed by the underlying shares and provide holders with dividend and shareholder rights.

StoneX forecasts that, driven by the new revenue model, the company’s revenue will reach approximately $120 million in 2027 and $198.5 million in 2028. That represents approximately 65% growth between the two years.

Palmer’s $18 target uses a valuation based on an enterprise value of approximately 14.5 times projected 2028 revenue. According to the analyst, the market has yet to fully reflect the company’s transition from tokenization services to market operations in its share price.