StoneX has significantly raised its price target for Securitize, increasing it from $12 to $18. This adjustment comes after the launch of Securitize's new tokenized stock trading platform, which is expected to open a substantial new revenue stream for the company. Analyst Mark Palmer maintained a Buy rating on Securitize (SECZ) despite a 10% drop in shares on Monday, noting that the stock is still undervalued given its evolution into a market operator.
During Securitize's second-quarter earnings call in August, management revealed that most of its tokenization revenue came from integration fees, meaning little of its $5.3 billion in transaction volumes was being monetized. The launch of Securitize Stocks changes this dynamic, allowing the company to earn fees from transactions, servicing, and potentially revenue from collateral in the future.
Last week's platform launch brought stocks like Apple, Nvidia, and Tesla onto the Solana blockchain, with transactions settling in USDC. These tokenized stocks are backed one-for-one by underlying shares and offer holders dividend and shareholder rights. StoneX projects that Securitize's revenue will grow to nearly $120 million in 2027 and almost $200 million in 2028, representing roughly 65% annual growth.
Palmer's $18 target implies a 14.5-times enterprise-value-to-revenue multiple to reach the 2028 forecast. This optimistic outlook reflects the belief that Securitize's new platform will significantly enhance its market position and financial performance.