Clear Street has initiated coverage of BitGo Holdings (NYSE: BTGO) with a Buy rating and established a price target of $18.00, according to a report released Monday. That target equates to about a 67% potential upside from a cited price of $10.76, though InvestingPro data referenced in the report indicates the share price is trading above that service's calculated Fair Value.
The brokerage's bullish view rests on an anticipated earnings inflection driven by scaling recurring infrastructure revenue outpacing operating expense growth. Clear Street projects that BitGo's core subscription and services offerings - together with exposure to stablecoin fee streams - will propel top-line expansion and margin improvement over the next several years.
Specific forecast metrics laid out by Clear Street include roughly 30% net revenue compound annual growth through 2028 and about 60% compounded adjusted EBITDA growth over the same period. The firm expects adjusted EBITDA margin to rise from approximately 15% in 2025 to around 29% in 2028.
Third-party data included in the coverage note shows BitGo is profitable on a trailing basis, with a price-to-earnings ratio of 14.04. That profitability figure sits alongside a notably weak gross profit margin cited at just 1.64% in the same dataset.
BitGo operates in the digital asset infrastructure space, offering custody and related services to clients. The Clear Street thesis emphasizes the company's subscription and service revenues as the primary drivers of the projected revenue and EBITDA ramps, and highlights additional stability contributed by fee streams tied to stablecoins.
Broader analyst activity
BitGo has also received attention from several other major brokers and research teams, producing a range of initial ratings and price targets. Compass Point opened coverage with a Buy rating and underscored BitGo's move toward a full-service prime brokerage model, noting custody fees make up roughly half of the company's net revenue.
Deutsche Bank also issued a Buy rating, pointing to potential gains from rising institutional adoption of crypto services in the U.S. Mizuho began coverage with an Outperform rating, noting BitGo's scale in managing over $100 billion in assets on its platform. Cantor Fitzgerald provided an Overweight rating, framing BitGo as an infrastructure and software layer that is less directly correlated to digital asset price swings or spot trading volumes.
By contrast, Goldman Sachs took a more cautious stance, initiating coverage with a Neutral rating and assigning a price target of $11.50 based on the company’s adjusted EBITDA metrics. These divergent initial views reflect a spectrum of analyst interpretations of BitGo's business model, growth prospects, and current valuation.
Investment considerations
Clear Street's outlook is centered on revenue growth and margin expansion driven by recurring business lines and stablecoin-related fees. While third-party data labels the company profitable on a P/E basis, the very low reported gross profit margin signals structural compression at the line-item level even as operating leverage is expected to improve.
Investors and market participants will likely weigh the projected high adjusted EBITDA growth and margin recovery against current valuation indicators and the range of analyst views offered by other firms.