Macroeconomic jitters have weighed on the cryptocurrency market recently, but a Wall Street analyst still sees big potential in Bullish, a top exchange operator.
On Monday, Compass Point analyst Ed Engel upgraded shares from Neutral to Buy and raised the price target from $30 to $51. The new target suggests 45% upside from Friday's close of $35.12.
Shares of the crypto exchange operator climbed 7.6% to $37.78 on Monday. The stock is down 1.5% this year.
Cryptocurrencies await a crucial test on Tuesday, when the Senate will vote on whether to advance the Clarity Act to floor consideration. If passed, the legislation would place cryptocurrencies such as Bitcoin under commodity regulations instead of securities laws.
Though Engel expects the bill to fail, he noted that news of political concessions by President Donald Trump, specifically his agreement to have the bill place ethical requirements on him and other government officials, has raised the odds of a surprise win. Trump's personal crypto investments have been a primary obstacle for the legislation.
Whether the bill passes or not is little concern for Bullish, according to Engel, who envisions a win-win scenario. If the Clarity Act passes, clearer regulation around crypto and tokenization could drive the stock higher. If it doesn't pass, Engel expects the Securities and Exchange Commission to step in quickly with a regulatory shortcut, allowing for U.S. investors to trade tokenized stocks legally on public blockchains. This could position Bullish to capture crypto market share on both sides of the transaction.
Engel also points to the planned 2027 launch of traditional tokenized equities. In his view, the company remains a key vehicle for investors looking to gain exposure to the tokenization of real-world financial assets.
In early May, Bullish announced its $4.2 billion deal to acquire Equiniti, a major regulated stock transfer agent that manages record keeping for roughly 3,000 corporate clients. Coupling Equiniti's client base with Bullish's blockchain-exchange infrastructure could create over $300 million in cost savings and revenue following the deal's expected close in the first quarter of fiscal 2027.
Once Bullish completes the acquisition, the gains might just get off to a start. Engel noted that if the Clarity Act fails, the SEC's regulatory shortcut could reshape the competitive landscape. If the SEC permits companies to opt out of third-party tokenization, issuers could ban apps such as Robinhood or Coinbase from offering synthetic stock tokens (which offer exposure to a stock without granting shareholder rights), curtailing retail user distribution.
That could open doors for Bullish, letting the company leverage Equiniti's roster to secure exclusive rights to tokenize blue-chip equities and lock out competitors.