The KBW investment bank began the coverage of Alcista (BLsh)COINDESK owner, with a market performance rating and an objective price of $ 55, calling for a rare public game in a highly regulated and institutional cryptographic exchange.
The bank considers the expansion of the United States in the short term as a catalyst for growth, with the differentiated technological battery of Bullish, competitive rates and the deep liquidity that position it to gain market share.
Bullish regulatory footprint, with licenses in Germany (Complies with Micar)Hong Kong and Gibraltar have drawn institutional merchants and enabled a global order book that links Asian and European markets, wrote the analyst Bill Papanastasiou.
KBW also highlighted Bullish’s work with Gibraltar’s regulators in a totally enabled Clearinghouse as a sign of his credibility as a market infrastructure provider.
Beyond trade, Bullish has diversified its income through the acquisitions of Coindesk and CCData, building recurring currents from data, rates and liquidity services, which KBW hopes that they compose more than 40% of the income for fiscal year 2017. The Coindesk platform also offers optional to reach retail users, who carry higher margins.
The bank sees that the United States market participation progresses thanks to the lowest bully rates in Bullish (1.6bps vs. ~ 3bps for coinbase) and strong liquidity.
A New York Bitlicense approval remains a key milestone, but KBW expects a national deployment independently.
Although the assessment maintains the neutral qualification for now, the analyst observed upward potential if the bullish executes his expansion plans and capitalizes the retail participation.
The shares were quoted in around $ 51.81 at the time of publication.
Read more: Wall Street sees us the entrance as Catalyst for the next Bullish stage
