Shares of crypto infrastructure company Bakkt (BKKT) have surged 170% in a two-week period, prompting Wall Street firm Benchmark to significantly raise its price target. The broker increased its forecast for the stock to $40 from a previous target of $13, maintaining its buy rating.
Despite the substantial rally, which brought the share price to approximately $26 in early trading, Benchmark suggests there is still considerable room for growth. The firm's analysis points to the company's strategic changes and a valuation that remains attractive compared to its industry peers.
Key Takeaways
- Benchmark raised its price target for Bakkt (BKKT) to $40, a significant increase from the previous $13 target, and reiterated a buy rating.
- The stock experienced a 170% rally over two weeks, reaching a price of around $26.
- An analyst report highlights that Bakkt trades at a lower valuation multiple (9.9x estimated 2026 EBITDA) compared to competitors like Coinbase and Robinhood.
- The company's strategic shift includes focusing on crypto infrastructure and stablecoin payments while divesting from its custody and loyalty divisions.
- Bakkt is projected to achieve profitability in the first half of 2026 following its corporate restructuring.
Benchmark Cites Growth Potential After Rally
Investment firm Benchmark has issued a positive outlook for Bakkt, even after the company’s stock value increased dramatically. Analyst Mark Palmer confirmed the firm's confidence by raising the 12-month price target by over 200% to $40 per share.
The updated forecast suggests that Bakkt’s recent performance has not exhausted its potential for further gains. The stock saw a 2% increase in early trading, settling near $26, which is still well below Benchmark's new target.
"The rally validates the strategic reset under CEO Akshay Naheta," Palmer noted in the report, referencing the leadership change that occurred in August.
This endorsement from a Wall Street firm has captured investor attention, signaling that the company's new direction is viewed as a positive development for its long-term financial health.
Valuation Remains Below Industry Peers
A key part of Benchmark's analysis is Bakkt's valuation relative to other companies in the digital asset and fintech sectors. According to Palmer, Bakkt trades at a multiple of just 9.9 times its estimated 2026 earnings before interest, taxes, depreciation, and amortization (EBITDA).
This figure is notably lower than that of its competitors, making the stock appear relatively inexpensive given its growth prospects.
Peer Valuation Comparison (Est. 2026 EBITDA)
- Bakkt (BKKT): 9.9x
- Coinbase (COIN): 24.1x
- Robinhood (HOOD): 45.5x
- Circle: 49.9x
This significant discount suggests that even after its 170% surge, Bakkt's market capitalization has not yet caught up to the levels of other major players. Benchmark argues this gap presents a compelling investment opportunity, especially as the company streamlines its operations.
Strategic Overhaul Drives Optimism
The recent investor enthusiasm is largely attributed to a significant strategic overhaul led by CEO Akshay Naheta. The company has sharpened its focus on what it considers its core, high-growth business areas.
Three Pillars of Growth
Bakkt's new strategy is concentrated on three primary segments:
- Crypto Infrastructure: Providing the underlying technology and services for other businesses to engage with digital assets.
- Stablecoin Payments: Facilitating payments using stablecoins, which are digital currencies pegged to stable assets like the U.S. dollar.
- Bitcoin Treasury Strategy: A newly announced initiative involving the management of bitcoin on its balance sheet.
Divesting Non-Core Assets
To support this new focus, Bakkt has been actively divesting from business units that were costly and not central to its new mission. The company has already sold its custody division and is in the process of exiting its legacy loyalty business. These moves are expected to reduce operational expenses and accelerate the path to profitability.
By shedding these non-core assets, Bakkt aims to become a leaner, more efficient organization. According to Benchmark's projections, this restructuring will enable the company to achieve profitability in the first half of 2026.
New Board Appointment Reinforces Expertise
Further bolstering confidence in Bakkt's future is a key addition to its leadership team. On September 22, the company announced the appointment of fintech veteran Mike Alfred to its board of directors.
Alfred brings a wealth of relevant experience to the company. He is the founder of BrightScope, a platform focused on retirement plan transparency, and Digital Assets Data, a firm specializing in blockchain analytics.
His background spans both traditional financial services and the digital asset infrastructure space. Benchmark highlighted his appointment as a positive step that should enhance Bakkt's strategic decision-making as it continues to scale its operations.
The combination of a focused business strategy, an attractive valuation, and strengthened leadership has created a compelling narrative for Bakkt, contributing to its recent market performance and positive analyst ratings.
