Compass Point Issues Neutral Rating on Bullish, Sets $45 Target Amid Valuation Concerns
Compass Point has initiated coverage of crypto exchange Bullish with a neutral rating and a $45 price target. The firm highlighted Bullish’s 110x projected 2026 EBITDA multiple as difficult to justify. Bullish went public at $37 per share in August and closed at $68 on debut, but shares have since pulled back.
Analyst Ed Engel noted that Bullish may not enter U.S. markets until Congress passes the CLARITY Act, potentially as late as 2026. Moreover, New York’s BitLicense regime and AMM-based market-making model could pose additional regulatory hurdles.
Bullish holds a $2.7 billion crypto treasury, mostly in bitcoin (BTC), which ties the stock’s performance to BTC price swings. Engel’s $45 target assumes bitcoin reaches $160,000 and a 50% chance of U.S. expansion, which could add $12 per share.
Traders should weigh valuation risks, regulatory timelines and BTC volatility before taking positions in BLSH stock.
Neutral
Compass Point’s neutral rating and cautious outlook on Bullish reflect balanced pros and cons. The 110x projected EBITDA multiple and potential U.S. market entry delays under the CLARITY Act limit near-term upside. Bullish’s significant bitcoin treasury ties its stock performance to volatile BTC prices. Similar cases, such as platforms pending regulatory approval, often experience muted trading ranges. In the short term, traders may remain on the sidelines, while long-term prospects depend on legislative progress and BTC trends.