Latest news with #Dolev
Business Insider
4 days ago
- Business
- Business Insider
Strategy Stock (MSTR) Gets a Price Target Hike from Mizuho's Top Analyst after Q2 Beat
Strategy (MSTR), the largest corporate owner of Bitcoin in the world, received a boost from Mizuho Securities Top analyst Dan Dolev. The 4.5-star analyst increased the stock's price target to $586 from $563 and maintained a Buy rating on the stock. The new price target indicates a potential 46% upside from current levels. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. This hike follows the company's recent strong Q2 results and growing momentum in the Bitcoin space. Revenue came in at $114.5 million, just above expectations, but the highlight was its EPS of $32.60, which came in well above the expected loss of $0.10. The company also provided upbeat guidance for 2025. It must be noted that the stock has been gaining momentum, driven by rising Bitcoin adoption, growing institutional interest, and optimism about clearer crypto regulations. Why Dolev Is Bullish About MSTR Stock Dolev is upbeat about MicroStrategy's Q2 performance. During the earnings call, the company raised its 2025 guidance, increasing its expected Bitcoin yield from 25% to 30%. It also boosted its forecasted Bitcoin gains from $15 billion to $20 billion. According to Dolev, this Bitcoin gain figure shows how much value the company expects to generate each year from its Bitcoin holdings and treasury activities, highlighting the strength of its Bitcoin strategy. The analyst also pointed out that MicroStrategy's stock has outperformed Bitcoin this year, rising 32% compared to Bitcoin's gain of 27%. This indicates that the stock is moving in step with Bitcoin but sometimes delivering higher returns, reflecting investor confidence in the company's approach. As a result, the analyst raised his price target to $586, showing his confidence that MicroStrategy will continue to grow its value and strengthen its position in the growing crypto market. Looking Ahead Dolev's positive view is backed by MicroStrategy's strong ability to raise funds, which lets the company buy more Bitcoin without pressuring current shareholders. For example, in the week of August 4–10, 2025, MicroStrategy sold preferred stock worth $13.6 million after fees and used the proceeds to buy 155 Bitcoin at around $116,401 each. As of August 10, the company held 628,946 Bitcoin with an average cost of $73,288 per coin. It continues to use its ATM programs, which have over $47 billion in capacity, to fund Bitcoin purchases. With regulatory clarity gradually improving and institutional interest in Bitcoin rising, MicroStrategy is well-positioned to benefit from these trends. Is MicroStrategy a Good Stock to Buy? Overall, Wall Street has a Strong Buy consensus rating on Strategy (formerly known as MicroStrategy) stock based on 11 Buys, one hold, and one Sell recommendation. The average 12-month MSTR price target is $563.69, implying 40.83% upside potential.
Business Insider
09-07-2025
- Business
- Business Insider
Circle Stock Could Plunge 59%, Mizuho Issues Sell Rating
Mizuho Securities' top analyst Dan Dolev initiated coverage of Circle Internet stock (CRCL) with a 'Sell' rating and $85 price target, implying a significant 59% downside potential from current levels. Dolev's bearish view on CRCL stems from his belief that the consensus revenue estimate for FY27 is highly optimistic and does not fully account for the potential impact of future interest rate cuts. Don't Miss TipRanks' Half-Year Sale Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. Additionally, the analyst stated that the consensus is overestimating the medium-term growth potential of Circle's USDC stablecoin. Dolev sees a 25% to 30% downside risk to the fiscal 2027 consensus revenue estimate of $4.5 billion. Furthermore, the passage of the GENIUS Act has widened the potential for circulation and adoption of stablecoins, but it has also opened up competition for more companies to enter the market. Circle could face heightened competition from rivals such as PayPal (PYPL) and Ripple (RLUSD), both of which already have their own stablecoins. Circle Faces Rate, USDC Pressures Dolev noted that the consensus revenue projection for FY27 ($4.5 billion) implies a CAGR (compound annual growth rate) of 30% to 40%. This estimate requires a substantial increase in USDC circulation and/or persistently high interest rates. Meanwhile, Dolev stated that consensus expects about five rate cuts through 2027, and USDC circulation has, in fact, flattened since April. Considering these factors, the analyst projects a 25% to 30% downside revision to the 2027 consensus revenue estimate. Coinbase Stands to Gain the Most Circle and its partner, Coinbase Global (COIN), are the primary issuers of USDC, currently the world's second-largest stablecoin. Dolev stated that although Circle mints the stablecoin, the real beneficiary of the partnership is Coinbase due to rising distribution costs. These costs have reduced Circle's net revenue margin from 61% in 2023 to roughly 39% in Q1FY25. Net revenue margin is defined as reserve income less distribution costs. Under the terms of the Circle-Coinbase partnership, COIN earns full interest income on USDC held on its platform, which accounts for about 25% of USDC in circulation. Plus, it earns 50% of the income from USDC held outside of Circle and Coinbase's platforms. The proportion of USDC circulation held on Coinbase's platform has grown from 8% in 2023 to 22% in 1Q25, driven by the rewards offered on its platform. Is Circle Stock a Buy, Hold, or Sell? Analysts prefer to remain sidelined on Circle Internet stock due to uncertainty about the future of the stablecoin market. On TipRanks, CRCL stock has a Hold consensus rating based on five Buys, five Holds, and two Sell ratings. Also, the average Circle price target of $185.73 implies 10.5% downside potential from current levels.
Yahoo
08-07-2025
- Business
- Yahoo
Circle stock slides as analyst says Wall Street 'overstates' stablecoin growth prospects
Circle (CRCL) stock fell roughly 1% Tuesday as Mizuho analysts gave shares an Underperfom rating, citing growing risks from rising competition and looming interest rate cuts. The stock has surged more than 500% since Circle's blockbuster IPO last month, buoyed by optimism around the broader adoption of asset-backed digital tokens. Shares were trading at roughly $204 in midday trading after recovering from a 4% slide pre-market. Mizuho analysts initiated coverage of the stock with a price target of $85. Circle makes much of its money from interest income—specifically from short term treasury bills backing its stablecoin, USDC (USDC-USD). If the Federal Reserve starts cutting interest rates in September, yields on treasurys are expected to decline. "We believe consensus does not fully account for looming interest rate cuts, and also overstates USDC's medium-term growth potential," Mizuho managing director Dan Dolev and his team said in a research note. Dolev also flagged rising distribution costs, noting that Circle shares a significant portion of its reserve income with partners like Coinbase (COIN). Furthermore, the Mizuho team warned that the GENIUS Act—a bill passed last month to establish regulatory guardrails around stablecoins—could act as a catalyst for increased competition, bringing new entrants into the market and potentially shrinking Circle's market share. Wall Street remains divided on the stock, with 8 Buy, 6 Hold, and 3 Sell ratings, according to Bloomberg data. Last month, Jeff Cantwell of Seaport Research Partners initiated coverage of Circle with a Buy rating and a $235 price target, calling it a leading crypto "disruptor" with a "sizeable future opportunity." "We think the overall stablecoin 'market cap' will reach $500B by the end of next year; longer-term, we think it ultimately can reach $2T," wrote Cantwell. Meanwhile Compass Point analyst Ed Engel recently rated the stock Neutral, with a $205 price target. 'We expect competition to accelerate after stablecoin legislation passes,' Engel wrote. 'This influx of competition could reduce long-term market share expectations and pressure CRCL shares in 2025.' Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines_ferre. Click here for in-depth analysis of the latest stock market news and events moving stock prices Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Insider
14-06-2025
- Business
- Business Insider
Visa Stock Plunges: Here's Why This Analyst Is Bullish
Visa (NYSE:V) was amongst several payment processor stocks taking a hit in Friday's trading as crypto's ongoing march toward mainstream adoption has sparked concerns about the implications for the group. Confident Investing Starts Here: Specifically, the Wall Street Journal reported that major retailers are seriously looking into using stablecoins as a way to sidestep the high fees tied to traditional card payments. Companies like Walmart and Amazon have apparently explored creating their own U.S.-based stablecoins, a shift that could potentially save them billions in processing costs by moving away from the conventional banking and card network infrastructure. If either Walmart or Amazon were to launch such a payment system, it could pose a major threat to traditional financial institutions, especially regional and community banks. These retailers not only have enormous customer and employee bases, but also access to massive amounts of consumer data and far fewer regulatory hurdles than banks. That combination has long made them powerful, and potentially disruptive, players in the financial space. Stablecoins are digital tokens typically pegged one-to-one with a government-issued currency like the dollar. They're backed by reserves such as cash or U.S. Treasurys and are currently used mainly for storing value or trading other cryptocurrencies. Whether these retail-led stablecoin projects move forward will likely depend on the outcome of the Genius Act, a bill that would lay the groundwork for stablecoin regulation in the U.S. The legislation recently passed a key procedural step but still needs to clear both the Senate and the House. So, credit card use might get switched to crypto, marking a continuation of sorts as Visa's growth has long been powered by people switching from cash to cards, historically accounting for about two-thirds of its volume growth. For Mizuho's Dan Dolev, an analyst who covers both crypto and payment platforms, a big issue he recently mulled revolved around how much 'US cash conversion runway' remains. Dolev's deep dive into different spending categories suggests that Visa's slower-than-expected growth compared to overall U.S. consumer spending since the pandemic isn't necessarily a sign of weakness. Instead, it's mainly because Americans have been spending more in areas that don't typically rely on cards, like rent or healthcare, and less in card-heavy areas like travel or dining. The good news is this trend is beginning to reverse. More importantly, Dolev believes there's still a lot of untapped potential for card adoption in the U.S. While consensus estimates put card penetration at 80 to 90%, the analyst thinks the real figure is closer to 75%. 'This leaves room for another decade of solid top-line growth domestically. Plus, V's performance in Canada & Nordics offers evidence of above-PCE growth, even when card penetration is >90%,' Dolev said. But whether stablecoin adoption changes all that remains to be seen. All told, for now, Dolev rates V shares as Outperform (i.e., Buy), while his $425 price target makes room for 12-month returns of 20%. (To watch Dolev's track record, click here) The rest of the analyst community remains firmly in V's corner too; the stock claims a Strong Buy consensus rating, based on a mix of 24 Buys and 4 Holds. The average price target stands at $388.85, implying shares will climb 10.5% higher in the months ahead. (See Visa stock forecast) To find good ideas for stocks trading at attractive valuations, visit TipRanks' Best Stocks to Buy, a tool that unites all of TipRanks' equity insights.
Yahoo
15-05-2025
- Business
- Yahoo
Robinhood surges nearly 10% on WonderFi deal; Mizuho sees Canada growth potential
-- Robinhood (NASDAQ:HOOD) is making its first major move into Canada with the acquisition of Wonderfi Technologies Inc (TSX:WNDR), a digital asset firm that operates two of the country's longest-standing regulated crypto platforms. Shares of WonderFi jumped 35% on the news, while Robinhood rose 9.8%. Mogo Inc (TSX:MOGO), WonderFi's largest shareholder, surged nearly 77%. The all-cash deal, announced Tuesday, values WonderFi at C$250 million ($178 million) and provides a 41% premium to its last closing price on the Toronto Stock Exchange. Robinhood will pay C$0.36 per share and expects the transaction to close in the second half of 2025, subject to regulatory and shareholder approvals. While the deal brings crypto platforms Bitbuy and Coinsquare under Robinhood Crypto, analysts are focused on the broader opportunity. According to Mizuho Securities analyst Dan Dolev, the transaction marks 'a critical first step' toward unlocking what he estimates to be a $250 million annual revenue opportunity, equivalent to nearly 10% upside to Robinhood's 2024 revenue. Dolev forecasts that Robinhood could eventually reach about 3 million funded accounts in Canada. 'Assuming revenue per funded account of $75 per year, this implies ~$250 million of annual revenue from Canadian funded accounts,' he wrote. His model discounts Robinhood's U.S. penetration and average revenue per user to arrive at more conservative Canadian estimates. The acquisition also provides strategic benefits beyond user growth. Dolev noted that WonderFi brings with it an Investment Dealer license in Canada, expands crypto staking capabilities, adds 61 supported coins, and complements Robinhood's pending acquisition of Bitstamp in its effort to build institutional crypto offerings. For Robinhood, the deal aligns with its goal of building 'a global financial ecosystem,' SVP Johan Kerbrat said in the press release. 'WonderFi has built a formidable family of brands serving beginner and advanced crypto users alike, making them an ideal partner to accelerate Robinhood's mission in Canada.' WonderFi will continue to operate its brands post-acquisition, and its existing leadership will join Robinhood Crypto. Toronto will remain Robinhood's Canadian headquarters, with more than 140 employees. Mogo, which orchestrated a 2023 merger between Coinsquare and WonderFi, endorsed the deal as a value-maximizing exit. 'This is a defining moment for WonderFi,' said Mogo President Greg Feller. As regulatory filings and shareholder votes move forward, analysts see Robinhood's Canadian strategy as taking shape, starting with crypto and potentially expanding to traditional brokerage services. Related articles Robinhood surges nearly 10% on WonderFi deal; Mizuho sees Canada growth potential Trump's Middle East trip a boon for NVIDIA Peloton raised to Outperform at Macquarie following Q3 earnings
