Deutsche Bank says it's time to scoop up shares of this crypto exchange

Deutsche Bank analyst Brian Bedell upgraded crypto-exchange Bullish to Buy from Hold while trimming the target to $51 (from $52), implying roughly 40% upside, arguing the stock now offers a more compelling risk/return after sliding about 51% from its year highs and trading roughly 5% below its August IPO level at ~31x Bedell’s 2027 EPS estimate. The upgrade follows Q3 results that beat on revenue but missed on adjusted net income; Bedell cites positive Q4 guidance, U.S. expansion, Bullish’s role providing infrastructure to traditional finance entrants, encouraging trading and fee-based momentum, good cost control and high incremental margins, while acknowledging part of the pullback stems from recent crypto-price weakness (BTC down from its October peak).

Analysis

Deutsche Bank analyst Brian Bedell upgraded Bullish to Buy from Hold while trimming the 12-month target to $51 from $52, implying roughly 40% upside versus current levels. The note highlights the stock trades at about 31x Bedell's 2027 EPS estimate after the shares contracted more than 50% from their mid‑August peak and now sit approximately 5% below the August 12 IPO reference level.

Bullish's third‑quarter results showed revenue above expectations while adjusted net income missed, a mixed print that sent the stock down about 3.6% in the following session; Bedell characterized the results as “good overall” and described the fourth‑quarter guidance as positive. He cites U.S. expansion, increasing role as infrastructure for traditional financial firms entering crypto, encouraging trading and fee‑based revenue momentum, disciplined cost control and high incremental margins from new revenue as drivers of forward growth.

Near‑term risk is concentrated in crypto price dynamics: Bedell acknowledges part of the share decline reflects Bitcoin falling to roughly $89,000 from a $125,000 peak in early October, so Bullish's trajectory depends on both macro crypto sentiment and execution on U.S. expansion and profitability improvements. The stock offers a more compelling risk/reward only if revenue momentum translates into margin recovery and crypto market stability; investors should expect continued sensitivity to BTC moves and quarterly earnings volatility.

Key Decisions for Investors

• Consider initiating a selective, size‑limited long position given the Deutsche Bank upgrade and ~40% implied upside, but avoid full allocation until Q4 guidance and U.S. expansion milestones are confirmed
• Monitor three leading indicators—Q4 revenue/margin trends, U.S. customer wins/market access progress, and Bitcoin price trajectory (currently ~89k vs 125k peak)—and be prepared to trim exposure if those do not show clear improvement
• Employ downside protection such as put options or a collar to limit losses from further crypto weakness or quarterly earnings misses while maintaining upside participation