StoneX Starts Bullish at Buy, Sets $42 Target on Tokenized Stock Market Growth

• StoneX said Bullish merits a buy rating and a $42 price target, implying about 97% upside.
• It said that if Bullish completes the Equiniti acquisition, the company would secure core infrastructure for the tokenized securities market and count many S&P 500 and FTSE 100 companies among its clients.
• StoneX said growth potential in the tokenized stock market and Bullish's revenue growth support the case, while delays or failure in the Equiniti acquisition, slower tokenization market growth, and new competitors entering the market remain the main risks.

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U.S. financial services firm StoneX has initiated coverage of crypto exchange Bullish with a buy rating, citing the growth potential of its tokenized equities business.

The Block reported on Nov. 9 that StoneX Financial began coverage of Bullish with a buy rating and a $42 price target. That implies about 97% upside from the stock's price at the time. Bullish shares were up 2.9% in early trading that day at above $22.

StoneX analyst Mark Palmer wrote that Bullish would gain core infrastructure for the tokenized securities market if it completes its acquisition of share registrar Equiniti. Equiniti provides services to about 3,000 securities issuers, 15,000 corporate clients and 20 million shareholders.

"Every major market structure shift needs a toll-taking gateway, and Bullish is acquiring that gateway," Palmer said. Once the deal closes, Bullish would take on share registration operations for about 30% of S&P 500 companies and half of the U.K.'s FTSE 100 firms.

Bullish signed a deal in May to acquire Equiniti for about $4.2 billion. The transaction includes the assumption of about $1.85 billion in debt and payment of Bullish stock worth about $2.35 billion. Equiniti handles about $500 billion in annual settlements.

StoneX also highlighted the growth potential of the tokenized stock market. Tokenized equities issued on blockchain are currently valued at about $2.1 billion, still in the early stages compared with the $151 trillion global stock market. Based on forecasts cited in Palmer's report, the broader tokenized asset market could reach $9.4 trillion by 2030.

StoneX also gave a positive assessment of Bullish's existing business. Adjusted revenue in the second quarter rose 62% from a year earlier to $92.6 million, while subscription, services and other revenue climbed to a record $62.7 million. Still, the firm cited delays or failure in the Equiniti acquisition, slower growth in tokenization and market entry by rivals including Nasdaq and the New York Stock Exchange as key risks.

Separately, Bullish announced that day it had appointed former New York Stock Exchange President Stacey Cunningham as its new president. The company is awaiting regulatory approval for the Equiniti deal while expanding issuer-focused tokenization efforts on blockchains including Solana, Aptos and Ethereum.

Suehyeon Lee