Investment bank KBW initiated coverage of Gemini Space Station (GEMI) with a market perform rating and a $27 price target, describing the crypto exchange as a well-rounded digital asset platform poised for long-term growth.
Nevertheless, wrote analyst Bill Papanastasiou, Gemini for now remains unprofitable and discounted valuation to competitor Coinbase is warranted “as the impact from
execution and market risk is elevated.”
KBW said Gemini’s ecosystem, spanning trading, custody, credit cards, staking, stablecoins, and tokenized equities, offers cross-selling potential as the crypto market expands.
The bank highlighted Gemini’s credit card business as a key growth driver, noting that it has more than 100,000 users and strong conversion into exchange activity thanks to crypto-based rewards.
Gemini went public last month at $28 a share, valuing the company at more than $3 billion.
KBW also pointed to the resolution of Gemini’s Earn program issues as clearing the way for renewed marketing and competitiveness.
A new partnership with Nasdaq could add as much as $47.7 million in near-term revenue through custody and staking services for listed firms, with further upside tied to tokenization trends, the report said.
KBW cited Gemini’s unified app and strong insider ownership, led by founders Cameron and Tyler Winklevoss, as advantages supporting stability and user growth.
Overall, KBW projects 53% annualized revenue growth over three years, outpacing peers, and expects profitability by late 2027, calling Gemini a balanced but promising play for investors betting on a prolonged crypto upcycle.
The stock was 2% higher premarket at $25.80.
Read more: Crypto Exchange Gemini’s Stock Trades Below IPO Price Despite Day’s Gains
