Bakkt Stock Soars 17% as Benchmark Triples Price Target to $40

Benchmark analyst Mark Palmer dramatically revised his outlook on Bakkt Holdings, raising the one-year price target from $13 to $40 just eight days after initiating coverage. This represents a more than tripling of the target and reflects a fundamental reassessment of Bakkt’s growth prospects. Palmer characterized the stock as ‘an attractive buy even after its sharp run-up,’ noting that it ‘continues to screen as inexpensive relative to both its growth potential and peers in the Fintech/digital asset ecosystem.’ The analyst specifically compared Bakkt’s valuation favorably against prominent publicly traded crypto firms including Coinbase and Robinhood.

The timing of this bullish revision is particularly significant given Bakkt’s recent trading history. The stock reached just above $30 on Tuesday, marking its first time above that threshold since late January. This milestone comes despite the stock remaining down 97% from its all-time high above $1,060 in 2021, according to Yahoo Finance data. For much of the year, Bakkt had struggled to crack $10, making the recent performance and Benchmark’s endorsement particularly noteworthy for investors.

Benchmark’s analysis directly attributes Bakkt’s resurgence to the strategic moves implemented by CEO Akshay Naheta since he assumed leadership in August. Palmer explicitly called the stock’s 170% price jump over a two-week period earlier this month ‘a validation of the moves’ Naheta has made. This represents a significant vote of confidence in the new leadership’s ability to reposition the company for success in the competitive digital asset space.

The company’s transformation has been multifaceted, including the recent addition of veteran crypto industry investor Mike Alfred to the Bakkt board. Palmer specifically praised this appointment, noting that ‘Mr. Alfred’s current role running private investment partnership Alpine Fox LP, alongside his board positions with digital infrastructure companies such as IREN, means he brings experience with capital allocation and scaling companies that should add rigor to BKKT’s decision-making process.’ The market responded positively to this news, with Bakkt’s share price jumping past analysts’ one-year consensus target following Alfred’s appointment.

Benchmark identified three primary areas for potential growth that underpin its optimistic outlook: crypto infrastructure, stablecoin payments, and Bakkt’s Bitcoin treasury management. Palmer emphasized that while the stock’s surge reflected newfound attention on the company, ‘we do not believe it has come close to fully reflecting the breadth of its optionality across three high-growth themes.’ This suggests substantial upside potential remains despite the recent rally.

The company’s strategic focus became clearer in July when Bakkt sold its loyalty rewards business for $11 million. This divestiture allowed the company to concentrate exclusively on digital asset infrastructure, with the crypto business generating more than $568 million in revenue during the second quarter compared to the loyalty unit’s approximately $10 million. The sale represented a deliberate shift toward core crypto services including custody, stablecoin payments, and tokenized assets.

Perhaps most significantly, Bakkt notified the U.S. SEC in June of plans to sell up to $1 billion in securities to provide fresh capital for a possible expansion of its corporate treasury to include Bitcoin. This move followed less than three weeks after the company updated its investment policy to allow Bitcoin and other digital assets as part of a broader treasury strategy. These developments position Bakkt to potentially benefit directly from Bitcoin’s appreciation while strengthening its credentials within the digital asset ecosystem.