Bakkt Holdings Inc. shares soared 17% on Tuesday, extending their recent rally after Benchmark Company raised its one-year price target for the digital asset services provider to $40, more than triple its previous estimate.
Benchmark analyst Mark Palmer highlighted Bakkt’s growth potential across three core businesses—crypto infrastructure, stablecoin payments, and Bitcoin treasury management. He described the company’s 170% surge earlier this month as “a validation of the moves” made by CEO Akshay Naheta since assuming the role in August.
“BKKT remains an attractive buy even after its sharp run-up as it continues to screen as inexpensive relative to both its growth potential and peers in the Fintech/digital asset ecosystem,” Palmer wrote, adding that the stock’s current valuation remains “modest” compared with rivals such as Coinbase, Circle, and Robinhood.
Bakkt stock was recently trading above $30, its first time crossing that threshold since January. Despite being down 97% from its all-time high above $1,060 in 2021, the company has gained momentum following a series of strategic shifts.
One recent catalyst was the appointment of veteran crypto investor Mike Alfred to the company’s board. Palmer noted Alfred’s experience running private investment partnership Alpine Fox LP and his board roles at digital infrastructure companies like Bitcoin miner IREN, saying his expertise in capital allocation and scaling would strengthen Bakkt’s decision-making process.
With the Benchmark upgrade and renewed investor confidence, Bakkt has surpassed analysts’ consensus one-year target, marking a sharp turnaround for the stock after struggling below $10 for much of the year.