Clear Street has started coverage of Bakkt (BKKT) with a buy rating and a $14 price target, implying 44% upside after the stock’s steep year-to-date decline. Shares were up 0.7% at $9.83 in early Wednesday trading, though Bakkt has fallen over 60% this year, compared with an 11% gain for the S&P 500.
The company has streamlined its operations, divesting non-core units like Loyalty and Custody to focus on its blockchain-native payments platform. Bakkt now centers on two key areas: Crypto Services for institutions and its Digital Transfer and Remittance (DTR) platform, which supports stablecoin payment infrastructure. Trading at just 2.9x projected 2027 EV/EBITDA, Bakkt is well-positioned to capture a share of the $190 trillion cross-border payments market, according to analysts led by Brian Dobson.
Clear Street projects 14% annual revenue growth through 2027, driven by DTR, with stablecoin transactions offering nearly double the margins of crypto services. Adjusted EBITDA is expected to turn positive by early 2026 and reach $49 million in 2027, aided by a $60 million cost reset. DTR plans to expand to 36 countries by late 2025 and over 90 by 2026, with transaction volume forecast at $2.6 billion by 2027.
Bakkt’s institutional-first model targets regulated partners like remittance firms and neobanks, leveraging its BitLicense and 50+ state money transmitter licenses for compliance and rapid scaling. With high-margin stablecoin flows and operating leverage, Clear Street sees Bakkt as an underappreciated stablecoin infrastructure play. Rival broker Benchmark also initiated coverage with a buy rating and $13 target.
