Securitize Sees Significant Target Increase

Analyst Mark Palmer from StoneX recently raised the price target for Securitize (NYSE: $SECZ) by 50%, moving it from $12 to $18. This adjustment comes ahead of the company’s third-quarter earnings announcement.

Palmer maintains a “Buy” rating, citing the launch of Securitize’s new tokenized stock trading platform as a key driver for anticipated revenue growth. Despite the stock witnessing a 10% decline on Monday, this new target represents a potential upside of approximately 45% from current trading levels.

Palmer noted, “The market still values Securitize like a tokenization vendor, even though it now operates as a market.” Interestingly, Securitize’s August earnings call suggested that most of its revenue from tokenization was derived from integration fees, indicating that the bulk of the $5.3 billion in second-quarter transaction volume had not yet been monetized.

The newly launched platform has the potential to create a steady revenue stream through transaction and servicing fees. Stocks like Apple (NASDAQ: $AAPL), Nvidia (NASDAQ: $NVDA), and Tesla (NASDAQ: $TSLA) are already available on the Solana blockchain, with each token backed by underlying shares and settled in USDC (CRYPTO: $USDC).

Future Revenue Projections

StoneX has forecasted nearly $120 million in revenue for Securitize in 2027 and an increase to almost $200 million by 2028, reflecting a compound annual growth rate of about 65%. The newly adjusted $18 target price implies an enterprise-value-to-revenue multiple of 14.5 times based on the 2028 revenue forecast.

Adjustments by Bank of America

Elsewhere, Bank of America analyst Craig Siegenthaler has made notable revisions on crypto-focused stocks. On October 5, he raised his price targets for both Robinhood (NASDAQ: $HOOD) and Coinbase (NASDAQ: $COIN). The target for Robinhood increased from $140 to $156, while Coinbase’s target moved from $174 to $203, with a “Buy” rating maintained for both companies.

Conversely, Siegenthaler has decreased the target for eToro (NASDAQ: $ETOR) from $46 to $39, assigning it a “Neutral” rating. Expectations surrounding earnings vary considerably among these firms.

Company-Specific Earnings Expectations

Robinhood is anticipated to report earnings of $0.64 per share on approximately $1.4 billion in revenue. The company has consistently exceeded EPS estimates for 11 consecutive quarters. In contrast, Coinbase is projected to incur a loss of $0.20 per share on revenue nearing $1.77 billion, following three consecutive quarters of missing earnings expectations. eToro is expected to report earnings of $0.40 per share on about $203 million in revenue.

Market commentary has linked the increase in Coinbase’s target partly to anticipated revenue from stablecoins following the Federal Reserve’s rate hike in September, despite adjustments to short-term trading volume forecasts.