Bakkt Shares Still Look Cheap After 170% Rally: Benchmark

Core Viewpoint - Bakkt's recent stock surge of 170% has not diminished its upside potential, as Benchmark has raised its price target significantly from $13 to $40 while maintaining a buy rating on the stock [1][2] Financial Metrics - Bakkt currently trades at 9.9 times estimated 2026 EBITDA, which is considerably lower than its peers: Coinbase at 24.1x, Robinhood at 45.5x, and Circle at 49.9x, indicating a relative discount and suggesting the stock is inexpensive given its growth profile [2] Strategic Developments - The stock rally supports the strategic reset under CEO Akshay Naheta, who has identified growth opportunities in crypto infrastructure, stablecoin payments, and a new bitcoin treasury strategy [3] - Bakkt has divested its custody division and is exiting its legacy loyalty business, which were costly and non-core, positioning the company to achieve profitability in the first half of 2026 [3] Leadership Changes - The appointment of fintech veteran Mike Alfred to Bakkt's board is seen as a positive move, bringing valuable experience in financial services and digital infrastructure, which is expected to enhance decision-making as the company scales [4]