Why This Bakkt Holdings Analyst Is Turning Bullish On The 'Unique' Crypto Company

Rosenblatt Securities believes Bakkt Holdings Inc’s BKKT unique position in the cryptocurrency space has created a buying opportunity.

What Happened: Rosenblatt analysts on Wednesday initiated coverage on Bakkt with a Buy rating and set a price target of $2.20, citing the company’s unique ties to digital assets and blockchain technology.

As a result of recent widespread chaos in the crypto industry, Rosenblatt expects the future of decentralized finance to look similar to traditional finance.

“BKKT is positioning itself to win this evolution and we believe it has the platform and technology to succeed,” Rosenblatt analysts wrote in a note to clients.

Bakkt has built scalable infrastructure to help financial institutions better monetize consumers across the crypto ecosystem. The company offers a “one-stop-shop” of payments, crypto, loyalty and rewards, the analysts said.

See Also: EXCLUSIVE: Wait, DodgeCoin Or Dogecoin? Many Americans Don’t Know The Difference

“BKKT is the only business that possesses all of these capabilities in addition to key regulatory licenses and institutional grade security,” Rosenblatt said.

A key component of the analyst’s thesis is that Bakkt provides investors with exposure to growth in the crypto space without being reliant on the underlying prices of crypto tokens, like Bitcoin BTC/USD or Ethereum ETH/USD.

Bakkt’s diverse business also offers durability amid the “crypto winter,” Rosenblatt said: “Which has proven unique among a peer group that is highly correlated to the crypto environment.”

Rosenblatt also highlighted Bakkt’s upcoming acquisition of Apex Crypto, which is expected to close in the first half of 2023. The deal should allow the company to reach profitability without further dilution, the analysts said.

“Recent events in the space such as the FTX bankruptcy and the broader crypto winter have certainly slowed the pace of adoption, but trading activity and account additions at Apex Crypto remain healthy, which should bode well for BKKT when the market stabilizes,” Rosenblatt said.

BKKT Price Action: Bakkt has a 52-week high of $18.31 and a 52-week low of $1.59.

The stock was trading 2.37% higher at $1.73 Wednesday afternoon, according to Benzinga Pro.

Photo: outsideclick from Pixabay.

DON'T MISS THE BIGGEST CRYPTO EVENT OF THE YEAR — Get your tickets here!