KBW Starts Coverage of Gemini With Market Perform Rating, Cites Long-Term Growth Potential
KBW has initiated coverage of Gemini Space Station (GEMI), assigning a market perform rating and a $27 price target. While the firm sees strong long-term prospects for the Winklevoss-led crypto exchange, it noted that Gemini is likely to remain unprofitable in the near term.
Analyst Bill Papanastasiou described Gemini as a “well-rounded digital asset platform” with solid growth potential but emphasized that a valuation discount versus Coinbase is warranted due to elevated execution and market risks.
Gemini went public last month at $28 per share, giving the company a valuation exceeding $3 billion.
KBW highlighted the resolution of Gemini’s Earn program issues, which paves the way for renewed marketing efforts and improved competitiveness. The bank also pointed to a partnership with Nasdaq, potentially generating $47.7 million in near-term revenue through custody and staking services, with further upside tied to tokenization trends.
The report noted Gemini’s integrated app platform and strong insider ownership, led by founders Cameron and Tyler Winklevoss, as structural advantages supporting user growth and platform stability.
Looking ahead, KBW projects 53% annualized revenue growth over the next three years and expects profitability by late 2027, describing Gemini as a balanced yet promising play for investors betting on a prolonged crypto upcycle.
GEMI shares were up 2% in premarket trading at $25.80.
