DeFi Technologies stock target raised to $5.50 by H.C. Wainwright
Investing.com
Published May 15, 2025 07:36AM ET
On Thursday, H.C. Wainwright analyst Kevin Dede increased the price target on DeFi Technologies (NASDAQ:DEFT) to $5.50, up from the previous $4.50, while reiterating a Buy rating on the company's shares. The analyst's optimism is in light of DeFi Technologies' profitable start to 2025, which comes despite a downturn in cryptocurrency prices in March. According to InvestingPro data, the stock has demonstrated remarkable momentum with a 499% return over the past year and an 81% gain in the last six months. With analysts projecting continued profitability and sales growth for 2025, investors seeking detailed insights can access 13 additional ProTips on InvestingPro.
DeFi Technologies has reported growth in its assets under management (AUM), which marginally rose to C$1.13 billion in the first quarter of 2025 from C$1.10 billion in the fourth quarter of 2024. This growth was supported by C$72 million in net inflows and the launch of four new exchange-traded products (ETPs) on its Valour platform. The company's ETP offering has now surpassed 65 products, with an ambitious target to reach 100 by the end of the year. The company's market capitalization stands at $1.27 billion, with a strong gross profit margin of 100% in the last twelve months.
The firm has maintained management fees at C$3.6 million, benefiting from a mix of higher-margin altcoin ETPs. DeFi Technologies has also seen an increase in staking and lending income, rising to C$14.0 million from C$12.9 million, as it actively engages in lending and runs in-house validator nodes. Approximately 66% of the total AUM is currently staked, and the company anticipates further penetration in this area, which could provide additional yield without requiring new capital.
DeFi Technologies' trading arm, Stillman Digital, sustained its trading commission earnings at C$3.0 million, consistent with the last quarter of 2024. Moreover, the company's DeFi Alpha segment reported a considerable post-quarter gain of US$17 million. The company is also developing new ventures, including SolFi Technologies for self-custody wallet infrastructure and CoreFi, a reverse-takeover vehicle that could introduce bitcoin-backed yield opportunities on the Core blockchain, where DeFi would hold a 30% stake.
Additionally, DeFi Technologies' 52.5% ownership in FINMA-licensed Neuronomics is set to introduce AI-driven strategies for Swiss fund vehicles later in the year. The company has also established memoranda with exchanges in Singapore, Kenya, and the UAE, which could provide capital-efficient expansion into new regulated crypto markets. These strategic moves have underpinned the analyst's decision to maintain a positive outlook and raise the price target on DeFi Technologies' stock. InvestingPro analysis shows the company's financial health score as "Fair," with particularly strong price momentum metrics. Investors can access comprehensive valuation metrics, financial health scores, and expert analysis through an InvestingPro subscription.
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In other recent news, DeFi Technologies, Inc. has filed its interim condensed consolidated financial statements for the first quarter ending March 31, 2025, with the U.S. Securities and Exchange Commission. This filing includes detailed financial statements, management's discussion and analysis, and certifications from the CEO and CFO. The report provides insights into the company's revenue, expenses, assets, liabilities, and equity status as of the end of the first quarter. In another development, Compass Point has initiated coverage on DeFi Technologies with a Buy rating and a price target of $5.00. The firm is recognized for its exchange-traded products related to digital assets, which are listed on international stock exchanges. Compass Point anticipates that DeFi Technologies' shares will transition to a Nasdaq listing in the second quarter of 2025, potentially increasing visibility and investor interest. The analyst firm has highlighted the company's EBITDA margins exceeding 75% and its current stock valuation, which is trading at six times the estimated earnings per share for 2025.
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Written By: Investing.com
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