Clear Street Initiates Bakkt Coverage with Buy Rating, Cites 44% Upside Potential

Clear Street launched coverage of Bakkt (BKKT) with a buy rating and a $14 price target, projecting a 44% upside despite the stock's 60% year-to-date decline. Shares edged 0.7% higher to $9.83 in early Wednesday trading.

The firm highlighted Bakkt's strategic pivot to a blockchain-native payments platform, shedding non-core units like Loyalty and Custody. Trading at just 2.9x projected 2027 EV/EBITDA, the company now focuses on two key segments: institutional crypto services and its Digital Transfer and Remittance (DTR) platform for stablecoin payments.

Analysts see Bakkt well-positioned to capture market share in the $190 trillion cross-border payments space, leveraging regulatory clarity and a lean cost structure. Stablecoin transactions—with margins nearly double those of crypto services—are expected to drive 66% annual gross profit growth.

Clear Street forecasts 14% annual revenue growth through 2027, with DTR's expansion to 36 countries by late 2025 and 90+ by 2026. Adjusted EBITDA is projected to turn positive by early 2026, reaching $49 million in 2027 following a $60 million cost reset.