Investment bank KBW initiated coverage of Gemini Space Station (GEMI) with a market performance rating and a $27 price target, describing the cryptocurrency exchange as a comprehensive digital asset platform poised for long-term growth.
Nevertheless, analyst Bill Papanastasio wrote, “Gemini is currently unprofitable, justifying its cheap valuation versus competitor Coinbase.”
Execution and market risk will increase. ”
KBW said Gemini's ecosystem, which spans trading, custody, credit cards, staking, stablecoins, and tokenized stocks, offers cross-selling potential as the crypto market expands.
The bank highlighted Gemini's credit card business as a key growth driver, noting that the company has more than 100,000 users and is seeing a significant shift towards exchange activity thanks to crypto-based rewards.
Gemini went public last month at $28 per share, valuing the company at more than $3 billion.
KBW also noted that resolving issues with Gemini's Earn program will pave the way for new marketing and competitiveness.
The new partnership with Nasdaq could potentially add up to $47.7 million in near-term revenue through custody and staking services for publicly traded companies, with further upside potential related to the tokenization trend, the report said.
KBW cited Gemini's integrated apps and strong insider ownership led by founders Cameron Winklevoss and Tyler Winklevoss as advantages supporting stability and user growth.
Overall, KBW projects annual revenue growth of 53% over three years, outperforming its peers, and expects to reach profitability by the second half of 2027, making Gemini a balanced but promising play for investors betting on a long-term crypto upcycle.
Shares rose 2% to $25.80 premarket.
read more: Cryptocurrency exchange Gemini's stock price remains below IPO price despite daily rise
