Wall Street banking and research firm Compass Point has begun coverage of the crypto platform Bullish (BLSH), which is the parent company of CoinDesk, assigning it a neutral rating and setting a price target of $45. While analyst Ed Engel believes that Bullish’s lower fee structure may enable it to capture a slice of Coinbase’s market share in the U.S., he raised concerns about the timing of Bullish’s expansion and the current valuation of its stock.
Engel pointed out that Bullish may struggle to enter U.S. markets until Congress enacts market structure legislation, specifically the CLARITY Act. This bill, which aims to clarify the jurisdictional overlap between the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC), might not be passed until the first half of 2026. In addition, Engel highlighted that New York’s stringent BitLicense requirements could present another obstacle for Bullish, given that its business model permits the company to act as its own market maker. This automated market maker (AMM) setup could lead to potential conflicts of interest, according to Engel.
Engel suggested that investors might find more favorable buying opportunities in the next one to two quarters, particularly as the stock currently features an impressive 110x multiple on projected EBITDA for 2026. Moreover, Bullish maintains a robust crypto treasury valued at approximately $2.7 billion, predominantly in Bitcoin, tying the stock’s performance closely to Bitcoin price fluctuations, which are known for their volatility.
The $45 price target is premised on the assumption that Bitcoin reaches $160,000 and incorporates a 50% likelihood that Bullish will successfully penetrate the U.S. market. Engel estimated that this potential market entry could enhance the stock value by around $12 per share.
Bullish made its public debut in August at $37 per share, initially experiencing a substantial rise before concluding its opening day trading at $68. Recently, shares have seen a decline, as they were down 4.6% on Wednesday, closing at $59.20.
