Compass Point has opened coverage on crypto trading platform parent Bullish (BLSH) with a neutral rating and a $45 price target, analyst Ed Engel said in a report published Sept. 3, 2025.
Engel noted Bullish’s lower fee model could eventually erode some of Coinbase’s U.S. share, but he flagged two big roadblocks to that outcome: timing and regulatory approval. He wrote the company is unlikely to enter U.S. markets until Congress passes market-structure legislation such as the CLARITY Act, which the analyst expects may not clear until the first half of 2026. Even then, New York’s strict BitLicense rules could complicate an expansion.
Regulatory concerns also flow from Bullish’s matching model: the platform uses an automated market maker (AMM) that lets it act as its own market maker — a setup Engel says could create perceived conflicts of interest with regulators.
On valuation, Engel highlighted the stock’s premium: Bullish trades at roughly a 110x multiple on 2026 projected EBITDA. He suggested there may be a better buying window in the next one to two quarters. Bullish also holds a roughly $2.7 billion crypto treasury, mostly in bitcoin, which links the company’s share performance to BTC price swings and adds volatility risk.
Engel’s $45 target assumes bitcoin reaches $160,000 and assigns a 50% chance Bullish successfully enters the U.S.—an expansion he estimates could add about $12 per share in value. Bullish went public in August at $37, jumped to a $68 close on debut, and was trading near $59.20 after a recent pullback.
Why it matters: investors should weigh Bullish’s growth potential against near-term regulatory uncertainty and high valuation multiples. The stock is sensitive both to legislative timing and bitcoin’s well-known volatility, so risk management is essential.
Source: CoinDesk. Read the original coverage for full details.