Bullish Initiates Coverage with Neutral Rating, $45 Price Target

Compass Point initiates coverage of Bullish with a neutral rating and $45 price target. Analyst Ed Engel cites concerns about timing and valuation, as well as potential hurdles from the CFTC, SEC, and New York's BitLicense regime. Engel believes there could be a better buying opportunity within 1-2 quarters, and Bullish's $2.7 billion crypto treasury ties the stock's performance closely to bitcoin price swings.

Wall Street banking and research firm Compass Point has initiated coverage of crypto platform Bullish (BLSH), the parent company of CoinDesk, with a neutral rating and a $45 price target [1]. Despite a belief that Bullish’s lower fee structure could help it chip away at Coinbase’s (COIN) U.S. market share in the future, the analyst Ed Engel cited concerns about the timing as well as the stock's valuation.

Engel wrote that Bullish is unlikely to enter U.S. markets until Congress passes the CLARITY Act, a bill aiming to clarify jurisdiction between the CFTC and SEC. This legislation might not be passed until the first half of 2026 [1]. Even then, New York’s notoriously strict BitLicense regime could pose a hurdle, according to Engel. Regulators may be wary of Bullish’s model, which allows the company to act as its own market maker via its automated market maker (AMM) — a setup that could raise conflict-of-interest concerns [1].

Engel believes there could be a better buying opportunity within 1-2 quarters, pointing to the stock’s current 110x multiple on 2026 projected EBITDA [1]. Bullish also holds a $2.7 billion crypto treasury, mostly in bitcoin (BTC), which ties the stock’s performance closely to BTC price swings. Engel’s $45 target assumes bitcoin hits $160,000 and includes a 50% probability that Bullish will break into the U.S. market. That potential expansion alone could add an estimated $12 per share in value [1].

Bullish went public in August at $37 per share and shot sharply higher before closing at $68 on its opening day. Shares were down 4.6% Wednesday to $59.20 [1].

References:
[1] https://finance.yahoo.com/news/bullish-gets-cautious-outlook-compass-150350469.html