Latest news with #MarkPalmer
Yahoo
4 days ago
- Business
- Yahoo
Bitcoin Treasury Firm Semler Scientific Still Has 3X Upside: Benchmark
Semler Scientific (SMLR) is trading just above the market value of its bitcoin holdings, with a market NAV (mNAV) of 1.04, highlighting what broker Benchmark calls a significant valuation disconnect. Markets, argued analyst Mark Palmer following the company's second quarter earnings yesterday, are giving "virtually no credit for [Semler's] ample room to use 'intelligent leverage' to add to its bitcoin holdings." Reiterating his buy rating and $101 price target — or nearly triple the current price of $35 — Palmer said there's much "upside optionality" not priced into the stock. Unlike other bitcoin treasury firms that lean on aggressive equity issuance, Semler is embracing a 'slow money' approach, wrote Palmer. Newly appointed Director of Bitcoin Strategy Joe Burnett laid out a plan to scale bitcoin holdings through a mix of operating cash flow, low-cost convertible debt, and selective at-the-money (ATM) issuances, all aimed at preserving shareholder value and avoiding dilution. The company holds $100M in 4.25% convertible notes due 2030 and, according to management, has significant headroom to issue long-term, bitcoin-backed debt to amplify equity upside, the report noted. As of July 31, Semler held 5,021 bitcoin with a $475.8 million cost basis and a market value of $586.2 million, reflecting a $110.4 million unrealized gain and a 31.3% year-to-date BTC yield. Management remains confident in reaching its target of 10,000 BTC by year-end 2025, and long-term goals of 42,000 BTC by 2026 and 105,000 by 2027. Benchmark's $101 target is based on a sum-of-the-parts analysis incorporating the expected future value of Semler's bitcoin treasury alongside its healthcare operations, including the emerging CardioVanta unit. The stock, trading near its bitcoin net asset value (NAV), reflects little premium for its strategic flexibility, a gap Benchmark believes will close as the company executes on its capital strategy.
Yahoo
6 days ago
- Business
- Yahoo
Coinbase's Weak Q2 Is a Blip, Not a Breakdown, Says Benchmark
Coinbase's (COIN) softer-than-expected second quarter results triggered a sharp Friday sell-off, but Wall Street broker Benchmark says the drop is a buying opportunity, not a red flag. Analyst Mark Palmer reiterated his buy rating and $421 price target. He argued that the exchange's long-term investment case remains intact as the company continues to build foundational crypto infrastructure. The shares are 1.8% higher in early trading Monday, after having closed 16.7% lower on Friday. Benchmark highlights five catalysts supporting its thesis. First, Coinbase's revenue-sharing agreement with Circle on USDC reserves positions it to benefit from stablecoin adoption, especially after the U.S. passed the GENIUS Act. Second, its institutional offerings, including prime brokerage, crypto-as-a-service and derivatives, are well-timed because the CLARITY Act may spur further adoption. Third, the firm is developing a crypto 'super app' integrating trading, payments, non-fungible tokens (NFTs), decentralized finance (DeFi) and developer tools, a unique product in the U.S. market. Fourth, the integration of decentralized exchanges expands token access beyond centralized listings. Finally, Coinbase's estimated $360 million in July transaction revenue, a 44% jump from its monthly average during the second quarter, signals a potential recovery in crypto activity. Benchmark concludes the quarter's miss is short-term noise. Coinbase's evolving platform, underpinned by regulation tailwinds and increasing institutional demand, points to long-term growth.
Yahoo
6 days ago
- Business
- Yahoo
Coinbase's Weak Q2 Is a Blip, Not a Breakdown, Says Benchmark
Coinbase's (COIN) softer-than-expected second quarter results triggered a sharp Friday sell-off, but Wall Street broker Benchmark says the drop is a buying opportunity, not a red flag. Analyst Mark Palmer reiterated his buy rating and $421 price target. He argued that the exchange's long-term investment case remains intact as the company continues to build foundational crypto infrastructure. The shares are 1.8% higher in early trading Monday, after having closed 16.7% lower on Friday. Benchmark highlights five catalysts supporting its thesis. First, Coinbase's revenue-sharing agreement with Circle on USDC reserves positions it to benefit from stablecoin adoption, especially after the U.S. passed the GENIUS Act. Second, its institutional offerings, including prime brokerage, crypto-as-a-service and derivatives, are well-timed because the CLARITY Act may spur further adoption. Third, the firm is developing a crypto 'super app' integrating trading, payments, non-fungible tokens (NFTs), decentralized finance (DeFi) and developer tools, a unique product in the U.S. market. Fourth, the integration of decentralized exchanges expands token access beyond centralized listings. Finally, Coinbase's estimated $360 million in July transaction revenue, a 44% jump from its monthly average during the second quarter, signals a potential recovery in crypto activity. Benchmark concludes the quarter's miss is short-term noise. Coinbase's evolving platform, underpinned by regulation tailwinds and increasing institutional demand, points to long-term 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
Yahoo
03-08-2025
- Business
- Yahoo
Strategy Stock Price Could Nearly Double as Bitcoin Treasury Aims to Dominate Market: Benchmark
Benchmark analyst Mark Palmer reiterated his buy rating for Bitcoin giant Strategy, raising the firm's price target for MSTR to $705, an 85% increase from its current share price. The new target hinges on a projection that Bitcoin will reach $225,000 by the end of 2026. After reporting $10 billion in net income in Q2—almost entirely unrealized gains on its $71 billion Bitcoin holdings—the company's stock is trading around $379.71, according to Yahoo Finance. That marks a 4% drop since the opening bell. Palmer said MSTR may be remembered less for its "eye-popping" earnings and more for its ambitions "to become not just the dominant Bitcoin treasury company, but the world's largest corporate treasury, full stop." CEO Phong Le said during yesterday's earnings call that the company aims for its treasury to top that of Microsoft, Google, and Amazon in the next three to five years. And he added that eventually he wants to exceed that of the largest corporate treasury: Berkshire Hathaway's $410 billion in cash and cash equivalents. Palmer also noted a big shift in how the company plans to fund its Bitcoin treasury growth, by retiring its convertible debt and replacing it with a preferred-stock-focused funding model. Saylor said during last night's earnings call that convertible notes, which it was using as recently as November 2024, was an appropriate instrument for MSTR's earlier stages of Bitcoin acquisition. But in January, the company redeemed $1 billion in convertible notes in an effort to reduce its leverage. The Benchmark note also called attention to Strategy's new approach to issuing common equity, only selling shares when its stock trades at a premium to the calculated per-share value of its Bitcoin and operating assets. Strategy Reports $10 Billion Q2 Profit, Plans to Raise $4.2 Billion to Buy More Bitcoin "The upshot is that MSTR is not just buying Bitcoin anymore, but instead engineering a corporate treasury machine designed to generate Bitcoin-denominated returns, manage its capital raises with precision, and scale faster," Palmer wrote. At the time of writing, though, Bitcoin has been battered with the rest of the crypto market and equities. BTC is currently changing hands for $114,950 after having dropped 3.1% in the past day. And spot trading volume in the past day has shot up to $57 billion, according to price aggregator CoinGecko. Meanwhile, the broader crypto global market capitalization has sunk 8% since Thursday, sitting now at $3.8 trillion. Sign in to access your portfolio
Yahoo
02-08-2025
- Business
- Yahoo
Benchmark Co. Reiterated a Buy Rating on Dave Inc (DAVE)
Dave Inc. (NASDAQ:DAVE) is one of the . On July 14, Mark Palmer of Benchmark Co. reiterated a Buy rating on Dave Inc. (NASDAQ:DAVE) with a price target of $320. The company's stock price dropped by 20.60% over the past month after JPMorgan Chase said it would charge data aggregators like Plaid for bank data access. Palmer believes that this drop was an overreaction as these changes will not impact the company's profit margins even if Plaid passes the cost to Dave Inc. (NASDAQ:DAVE). A customer using the personal financial management tool to navigate their finances. Palmer also highlighted that the company has changed its method of making money from ExtraCash advances and has moved to a mandatory fee. This move has increased the average revenue per user, and despite the increased fee, the demand has stayed strong. The analyst finds the current stock price attractively valued as the company is cheaper than other fintech names in the market. Dave Inc. (NASDAQ:DAVE) is a fintech company that offers mobile-first banking services designed to help underserved consumers manage their money. While we acknowledge the potential of DAVE as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey.
