ClearStreet analyst Owen Lau upgraded shares of crypto platform Bullish (BLSH) to Buy from Hold on Tuesday, noting the company’s growing market share and product expansion, even as he cut his price target from $60 to $57.
Lau said Bullish’s share of global cryptocurrency spot trading jumped from 2.1% in the third quarter to 3.7% in November, taking volume away from rivals Bitget, Bybit and Gate. The company’s trading volume in October increased 70% compared to the monthly average of the previous quarter. Lau attributed the gains to Bullish’s post-IPO credibility and its push into new product lines.
Bullish recently launched options trading and began trading in the US after receiving a BitLicense, giving it access to one of the largest crypto markets in the world. The exchange combines a traditional order book with an automated market maker, aiming to provide strong liquidity to both retail and institutional traders. Lau said this broader set of services could increase recurring revenue from 28% of total sales in 2024 to 70% in 2027.
Despite a 21% drop in Bullish shares since late October, Lau called the sell-off “overblown.” He attributed the recent weakness in blockchain stocks to macroeconomic concerns and the market’s shift in focus toward AI.
“Blockchain fundamentals remain very strong,” he wrote, citing insights from industry conferences such as Money20/20 and Ripple Swell.
The bullish valuation has also been drastically reset. The company’s forward EV/EBITDA multiple fell to 25x from 45x in September, bringing it in line with Coinbase after previously trading at a premium. ClearStreet forecasts that Bullish’s revenue will grow at an annual rate of 25% through 2027, surpassing Coinbase’s 14%.
Lau added that the reopening of the US government this week could restore investor sentiment and pave the way for new cryptocurrency regulation, including the proposed Clarity Act. Still, he warned that rising interest rates, competitive pressures and volatile token prices remain key risks for the exchange.
Bullish is the owner of CoinDesk.
