Wedbush has initiated coverage of BitGo Holdings (NYSE: BTGO) with an Outperform rating and a price target of $15.00, the firm said on Monday. At the stated target, the stock would sit nearly 40% above the most recent price of $10.76. The share price has moved lower over recent months, with a six-month decline of 41.81%.
BitGo is described by Wedbush as a provider of core digital asset infrastructure, offering services across wallets, trading, financing, settlement, and staking. The company supports more than 4,900 institutional clients and, based on InvestingPro data cited in the coverage, carries a market capitalization of $1.24 billion and trailing twelve-month revenue of $11.13 billion. InvestingPro data also indicates BitGo was profitable over the last year.
Wedbush's initiation emphasizes a shift among many customers from experimentation to active construction of digital asset infrastructure. The research note asserts that legacy systems are ill-equipped to accommodate the growing number and complexity of digital assets, and that the currently fragmented ecosystem - with disparate applications - has elevated operational and security risks.
The brokerage highlighted BitGo's positioning as an all-in-one platform that is regulatory compliant, arguing that the company helps institutional clients build digital asset infrastructure while generating recurring revenue streams that are not directly tied to digital asset price swings. Wedbush said this recurring revenue orientation produces a more stable business model relative to the broader crypto market's volatility.
At the same time, InvestingPro analysis referenced in the coverage reports valuation and margin concerns. The platform indicates BitGo is trading above its Fair Value, notes a price-to-earnings ratio of 14.04, and identifies weak gross profit margins of just 1.64%.
Analyst sentiment across other firms reflected a broadly bullish stance in recent coverage initiations. Price targets and ratings reported by firms initiating coverage include:
- Deutsche Bank: $17.00 price target, citing BitGo's position to benefit from increasing institutional adoption of cryptocurrency services.
- Rosenblatt Securities: $17.00 price target, emphasizing focus on institutional clients and security services.
- Compass Point: $17.00 price target, noting expansion into a full-service prime brokerage model and the contribution of custody fees to net revenue.
- Clear Street: $18.00 price target, projecting an earnings inflection driven by rapid scaling of recurring infrastructure revenue.
- Canaccord Genuity: $15.00 price target, pointing to leadership in digital asset custody and robust security measures.
Collectively, those analyst notes produce a range of price targets from $11.50 to $18.00, with brokers maintaining a strong buy consensus according to the information in the coverage.
Market and sector context
The coverage underscores attention to digital asset custody and infrastructure among institutional market participants. The analysis highlights how custody, prime brokerage-like services, and recurring infrastructure revenue are central to current broker and analyst evaluations of companies operating in the crypto services and digital asset infrastructure space.
Bottom line
Wedbush's initiation on BitGo frames the company as a regulatory-compliant, institution-facing infrastructure provider with a recurring revenue focus that some analysts view as more stable versus spot crypto volatility. However, InvestingPro data cited in the coverage also flags valuation and margin metrics that investors may weigh alongside the favorable analyst price targets and the recent string of buy-oriented initiations from other firms.